New data also shows one in five prospective buyers and homeowners are using AI in the homebuying process

CHARLOTTE, N.C., June 23, 2026 /PRNewswire/ -- For the first time since 2023, a majority of consumers say it's better to buy a home in the current market. According to the latest Bank of America Homebuyer Insights Report, conducted in partnership with Bank of America Institute, 53% of respondents now favor buying over renting or moving in with family (47%).

The survey also revealed positive shifts in consumer sentiment toward homeownership, including:

• 90% of respondents say a home is a valuable investment, up from 79% in 2025.
• 94% say homeownership provides stability, up from 83% in 2025.
• 32% say they are more confident in their ability to buy a home this year, up from 27% last year.

"We are seeing meaningful changes in attitudes toward homeownership," said Matt Vernon, Head of Consumer Lending at Bank of America. "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."

Insights point to movement in the market
Even as attitudes shift, prospective buyers increasingly cite affordability as the top barrier to homeownership, with 58% pointing to expensive home prices (vs. 46% in 2025) and 47% pointing to high interest rates (vs. 40% in 2025). Bank of America Institute's latest On the Move analysis also shows rent payments are declining, suggesting renters are trading down by opting for smaller units, fewer amenities, more remote areas, or shared living arrangements to cut costs.

Still, intent to purchase a home is rising:

• Fewer prospective buyers are waiting for market conditions to improve before purchasing. In this latest survey, 71% said they expect prices and interest rates to fall and are waiting until then to buy a home, compared to 75% in 2025, with Gen Z (68% vs. 74%) and Millennials (70% vs. 77%) leading this shift.
• 52% of current homeowners say they expect to buy another home (a new or additional one), and more are accelerating their timelines, with 22% planning to buy within the next year, compared to 15% in 2025.

The lock-in effect¹, while still present, appears to be easing. The survey points to increased willingness to compromise, with more prospective homebuyers open to moving—even if it means paying a higher interest rate for:

• A more affordable area (76% vs. 71% in 2025 and 68% in 2024).
• Their dream home becoming available (75% vs. 69% in 2025 and 67% in 2024).
• A better location (71% vs. 65% in 2025 and 63% in 2024).

AI becomes part of the homebuying journey
One in five prospective buyers and current homeowners (20%) used AI tools or chatbots in the past year for homebuying research, including 28% of Millennials and 32% of Gen Z. Among those prospective buyers who used AI, top use cases include:

• Estimating affordability, mortgage payments, or closing costs (57%).
• General education and research about the process (55%).
• Researching neighborhoods, market trends, or property values (52%).

Although AI can be a useful tool, prospective buyers still prefer human expertise for key steps such as touring homes (55%) and legal or contractual advice (54%).

"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," says Vernon. "We find that clients prefer a mix of high-tech solutions such as Bank of America's Digital Mortgage Experience – which streamlines the mortgage application process online or via mobile – paired with the high-touch experience and expertise of lending and real estate professionals along the way."

Gen Z adapts to today's market
Some Gen Z are taking on extra jobs (28%) or considering co-buying with friends or family (32%) to make homeownership more attainable, and 31% plan to leverage homebuyer assistance programs, such as Bank of America's Down Payment Grant, America's Home Grant® or low down payment mortgages. By leveraging these resources, eligible homebuyers can receive up to $17,500 in combined down payment and closing cost assistance, or lock in a mortgage with a competitive rate and 3% down payment. Bank of America also offers free financial education tools, including Better Money Habits® and Life Plan®, to help buyers build confidence and plan for long-term financial goals.

Methodology

Sparks Research conducted a national online survey on behalf of Bank of America from April 13 to May 10, 2026. A total of 2,000 surveys (1000 homeowners / 1000 renters) were completed with adults 18 years old or older, who make or share in household financial decisions, and who currently own a home/previously owned a home or plan to own a home in the future. Select questions allowed respondents to choose more than one answer, resulting in responses that may equate to more than 100 percent.

Bank of America Institute

Bank of America Institute is dedicated to uncovering powerful insights that move business and society forward. Established in 2022, the Institute is a think tank that draws on data and analyses from across the bank and the world to provide timely and original perspectives on the economy, sustainability, and global transformation. The Institute leverages the depth and breadth of the bank's proprietary data, from nearly 70 million consumer and small business clients, $4.52T in total payments in 2025 and $1.2T in consumer and wealth management deposits. From this robust data set, the Institute provides a unique perspective on the health of the economy. It also elevates thought leadership from throughout the bank that addresses long-term trends and shares these findings with the general public.

Bank of America

Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving nearly 70 million clients with approximately 3,500 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 59 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. As the #1 small business lender in the United States (FDIC), Bank of America offers industry leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.

For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.

Reporters may contact

Susan Atran, Bank of America
Phone: 1.646.743.0791
[email protected]

Footnotes

¹ The lock-in effect refers to the financial disincentive that prevents homeowners from selling their property because doing so would mean giving up a low, favorable mortgage interest rate they secured in the past and being forced to take on a new mortgage at today's much higher rates.

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SOURCE Bank of America Corporation