BofA Study: More Americans Favor Buying Over Renting for the First Time Since 2023
Fifty-three percent of consumers now state it is better to buy a home than rent, according to the latest Bank of America Homebuyer Insights Report. This marks the first time since 2023 that a majority favors purchasing over renting or living with family.
Marcus Thorne, Lead Wealth Strategist & Solo Columnist·updated June 29, 2026
The Affordability Paradox
We see a clear divergence between consumer sentiment and hard balance-sheet math. While optimism is rising, the actual barriers to entry have intensified. Specifically, 58% of prospective buyers now identify expensive home prices as their primary obstacle—up from 46% in 2025. Concurrently, 47% point to high interest rates, compared to 40% in 2025.
Rent payments are declining, but this is not a sign of organic deflation. Bank of America Institute’s "On the Move" analysis indicates renters are actively trading down to smaller units, sacrificing amenities, or relocating to remote areas to cut costs. The opportunity cost of renting remains high, but the capital required to transition into equity is steeper than it was twelve months ago. You must calculate whether trading down to cheaper rent is a better wealth-preservation strategy than locking in a high-interest mortgage.
Easing Lock-Ins and the AI Integration
The lock-in effect that has frozen housing inventory is easing. Buyers are increasingly willing to compromise on location or size, even if it means accepting a higher interest rate on their new debt. To navigate this friction, one in five prospective buyers and homeowners utilized AI tools or chatbots for research over the past year. This adoption rises to 28% for Millennials and 32% for Gen Z.
Yet, when the transaction moves from research to execution, human capital remains non-negotiable. The study shows 55% of buyers still demand human assistance for physical home tours, and 54% require human experts for legal and contractual advice. If you are leveraging AI to optimize your search, remember that algorithms do not underwrite risk or read the fine print of a local real estate contract.
The Strategic Choice
Ultimately, you face a binary calculation. You can continue to rent, accepting a lower quality of living to preserve cash flow, or you can buy into an expensive market and accept the yield drag of a high-interest mortgage. If you choose to buy, do not rely on the hope of immediate refinancing; underwrite the property based on today's rates, not tomorrow's assumptions.