Despite elevated mortgage rates and high home prices, the majority of Americans still favor buying a home rather than renting in the current housing environment, a new report from Bank of America said.
BofA’s Homebuyer Insights Report, released on June 23, shows that 53 percent of survey respondents said buying a home is the preferred option versus renting or living with family members, the first time in three years of positive homebuying sentiment.
“We are seeing meaningful changes in attitudes toward homeownership,” Matt Vernon, head of consumer lending at Bank of America, said.
“Despite real and persistent challenges in the market, buyers and owners are increasingly optimistic, and many are starting to move forward rather than waiting on the sidelines.”
Buyer sentiment also improved. Fewer prospective homeowners said they are waiting for market conditions to improve before purchasing, BofA researchers noted. In 2025, three-quarters of prospective buyers said they preferred to wait until housing market conditions were more favorable before buying a home, a number that declined to 71 percent in 2026.
The continued appreciation in home values across the country is one factor tilting buyer sentiment toward ownership. BofA noted that 90 percent of survey respondents said homeownership is a valuable investment, up from 83 percent in 2025. The median sales price in May was $429,300, up by 1.3 percent year over year, the National Association of Realtors (NAR) stated. By way of comparison, at the end of 2023, the median sales price across the United States was $389,800, the NAR said.
A greater number of buyers said they are willing to take on a higher interest rate in order to live in a more affordable area (76 percent in 2026 versus 71 percent a year ago), the BofA study noted. Three-quarters of prospective buyers stated they would be willing to move if their dream home became available (75 percent versus 69 percent), or simply move to a better neighborhood (71 percent versus 65 percent).
Prospective homebuyers are turning to artificial intelligence (AI) in greater numbers to help in the homebuying process, BofA stated. One in five people searching for homes used AI tools and chatbots to estimate affordability and payments, or learn more about particular neighborhoods and real estate market trends. However, when it came to taking home tours or seeking contractual advice, more than half of respondents preferred human expertise for those important steps.
Sparks Researchers conducted BofA’s Homebuyer Insights Report, surveying 1,000 homeowners and 1,000 renters between April 13 and May 10.
