1 in 2 consumers now say it’s better to buy than rent
Though high rates and home prices continue giving many consumers pause, 53% believe buying a home is a better option than paying rent or moving in with family.
Over half of consumers now say they believe buying a home is a better option than renting — the first time in three years that a majority has expressed this opinion, according to a report released this week.
Buying beats renting despite affordability concerns: Bank of America's 2026 Homebuyer Insights Report is based on a survey conducted in April and May among 1,000 adult homeowners and 1,000 adult renters. More than half (53%) of the survey's respondents said they think it's better to buy a home in the current housing market than to rent or move in with friends or family.
About 7 in 10 (71%) respondents said they expect prices and interest rates to fall and are waiting until they do to buy a home. While high, this share is still down from 75% a year ago, suggesting that more may start to push forward with the homebuying process.
The survey's findings also indicate that the pandemic-era mortgage rate lock-in effect may be easing as more prospective buyers express a willingness to pay a higher rate for a better location or for a home that is more suited to their needs.
"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," said Matt Vernon, head of consumer lending at Bank of America.
So far, however, that optimism hasn't shown up in home sales. While pending sales were up in May, this year's spring market was mostly full of fits and starts amid the war in the Middle East, which sent energy prices and inflation higher.
High prices, rates still stifling activity: Bank of America's report flagged high home prices and elevated mortgage rates as the top two factors leaving aspiring buyers on pause. The challenging market conditions are also reflected in a separate survey from Clever Real Estate, which found that 95% of the 1,000 potential buyers polled in April said at least one barrier is keeping them from making a purchase — and nearly 3 in 5 are worried they may never be able to buy a home.
High home prices and mortgage rates were similarly the most common barriers to homeownership cited by Clever survey respondents. Economic uncertainty, income and saving constraints, and a lack of inventory also ranked high among respondents.
Nearly half of would-be buyers open to 6% rates: Despite consumers' affordability concerns, the Clever survey results seemed to show some acceptance of elevated mortgage rates, with 44% saying they would accept a rate of 6% or higher and 23% would be willing to go up to or over 7%.
Still, there remains a strong contingent of consumers who hope for a return to the heady days of 3% mortgages. Clever's survey found that 16% of all aspiring buyers wouldn't accept a rate above 3%, a share that jumped to 20% among respondents who plan to buy in the next three to five years.
The reality of monthly payment amounts fuels consumer concerns, with 57% of future buyers saying they could not comfortably afford a typical $2,000 monthly payment. Meanwhile, 81% said they have other priorities aside from homeownership that they "would rather" accomplish in the coming years, including paying off debt, traveling and building a career.