CHARLOTTE, N.C. — What are credit union leaders to make of attitudes toward housing? Various surveys have found high rates and high prices contributing to affordability challenges that have discouraged many.
And then there is a different view, including a new survey that has found a majority of consumers now believe it is a better time to buy a home than rent or live with family, marking the first time since 2023 that more Americans have favored purchasing a home despite ongoing affordability challenges, according to new research from Bank of America.
The latest Bank of America Homebuyer Insights Report (PDF), conducted in partnership with the Bank of America Institute, found 53% of respondents said buying a home is preferable in the current market, compared with 47% who favored renting or moving in with family.
The survey also found growing optimism toward homeownership, with respondents increasingly viewing homeownership as both a sound investment and a source of stability.
Key Findings
According to Bank of America, key findings include:
- 90% of respondents said a home is a valuable investment, up from 79% in 2025.
- 94% said homeownership provides stability, up from 83% a year earlier.
- 32% said they are more confident in their ability to buy a home this year, compared with 27% in 2025.
“We are seeing meaningful changes in attitudes toward homeownership,” Matt Vernon, head of consumer lending at Bank of America, said in a statement. “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.”
The report found affordability remains the biggest obstacle for prospective buyers.
Among respondents:
- 58% cited expensive home prices as the top barrier to homeownership, up from 46% in 2025.
- 47% pointed to high interest rates, up from 40% a year earlier.
Rent Payments Decline
Bank of America Institute’s latest “On the Move” analysis also found rent payments are declining, suggesting renters are reducing housing costs by choosing smaller units, fewer amenities, more remote locations or shared living arrangements.
Despite concerns over affordability, Bank of America reported signs that consumers are becoming more willing to enter the housing market.
The survey found:
- 71% of prospective buyers said they are waiting for prices and interest rates to decline before purchasing, down from 75% in 2025.
- Among Generation Z respondents, that figure fell to 68% from 74%.
- Among Millennials, it declined to 70% from 77%.
Interest in More Property
Current homeowners also showed increased interest in purchasing additional property.
According to the survey:
- 52% of homeowners expect to buy another home, either a replacement residence or an additional property.
- 22% plan to purchase within the next year, up from 15% in 2025.
The report suggests the so-called “lock-in effect,” in which homeowners hesitate to move because of lower mortgage rates on existing homes, may be easing as buyers become more willing to accept higher borrowing costs.
Who’s Willing to Move?
Among prospective buyers, willingness to move despite higher interest rates increased when:
- A more affordable area became available, cited by 76%, up from 71% in 2025 and 68% in 2024.
- A dream home became available, cited by 75%, up from 69% in 2025 and 67% in 2024.
- A better location became available, cited by 71%, up from 65% in 2025 and 63% in 2024.
AI & Homebuying
The survey also found artificial intelligence is playing a growing role in the homebuying process.
One in five prospective buyers and homeowners, or 20%, reported using AI tools or chatbots during the past year for homebuying research. Usage was particularly high among younger consumers, including:
- 32% of Gen Z respondents.
- 28% of Millennials.
Among prospective buyers who used AI tools, the most common uses were:
- Estimating affordability, mortgage payments or closing costs (57%).
- Learning about the homebuying process (55%).
- Researching neighborhoods, market trends and property values (52%).
However, respondents continued to favor human expertise for critical decisions.
According to Bank of America:
- 55% prefer working with people when touring homes.
- 54% prefer human assistance for legal and contractual matters.
“AI is becoming a meaningful first step in the homebuying journey, especially for younger buyers. However, when it comes to high-stakes decisions, people still want trusted experts by their side,” Vernon said.
He added that many consumers prefer a combination of digital tools, including Bank of America’s Digital Mortgage Experience, and guidance from lending and real estate professionals.
How Younger Consumers are Adapting
The report also highlighted how younger consumers are adapting to affordability challenges.
Among Gen Z respondents:
- 28% said they have taken on additional jobs to help achieve homeownership.
- 32% said they are considering purchasing a home with friends or family members.
- 31% said they plan to use homebuyer assistance programs.
Bank of America noted that eligible buyers may qualify for up to $17,500 in combined down payment and closing-cost assistance through programs such as its Down Payment Grant and America’s Home Grant, or secure mortgages with down payments as low as 3%.
The survey was conducted online by Sparks Research on behalf of Bank of America between April 13 and May 10, 2026. It included 2,000 adults who make or share household financial decisions, consisting of 1,000 homeowners and 1,000 renters.
