BofA data shows homebuying sentiment at a three-year high, with AI now reshaping how buyers begin their property search
For the first time since 2023, a majority of American consumers say buying a home makes more financial sense than renting.
The Bank of America (BofA) Homebuyer Insights Report — conducted by Sparks Research between April 13 and May 10, surveying 2,000 adults — found 53% now favor purchasing over renting or moving in with family.
Nine in 10 respondents said a home is a valuable investment, up from 79% in 2025, while 94% said homeownership provides financial stability, an 11-point increase year-on-year. Confidence in the ability to buy this year rose to 32% from 27% in 2025.
"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."
Affordability still the stumbling block
The gap between intent and execution remains wide. The proportion of prospective buyers citing expensive home prices as their top barrier reached 58%, up from 46% in 2025, while 47% pointed to high interest rates versus 40% the prior year.
In fact, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development jointly reported that new home sales dropped 7.3% month over month to a seasonally adjusted annual rate of 580,000 units. That's well below the consensus forecast of 632,000 and down 6.8% from the May 2025 pace of 622,000.
The lock-in effect, however, is softening. The share waiting for prices and rates to fall before purchasing dropped to 71%, down from 75% in 2025. Gen Z (68% vs. 74%) and Millennials (70% vs. 77%) led that retreat.
More current homeowners are also accelerating timelines, with 22% planning another purchase within 12 months, up from 15% in 2025.
Willingness to compromise is growing too: 76% of prospective buyers said they would accept a higher rate to relocate to a more affordable area, up from 68% in 2024.
AI enters the homebuying conversation
One in five prospective buyers and current homeowners, or 20%, used AI tools or chatbots for homebuying research in the past year, rising to 32% among Gen Z and 28% among Millennials.
Top use cases included estimating affordability and mortgage payments (57%), learning about the process (55%), and researching neighborhoods and market trends (52%).
Demand for human expertise remains firm at critical stages. Some 55% of respondents said they prefer a professional for home tours and 54% want human guidance for legal matters — mirroring what Mortgage Professional America has examined in its reporting on consumer confidence in AI-assisted homebuying, where separate research by Cotality found that trust in AI for property searches fell from 30% to 16% in 2026 despite rising use.
"AI is becoming a meaningful first step in the homebuying journey, especially for younger buyers," Vernon said. "However, when it comes to high-stakes decisions, people still want trusted experts by their side."
Buyer intent is strengthening and the research funnel is going digital first. As first-time buyers pursue unconventional strategies to navigate affordability, those who engage that pipeline early, not just at the application stage, will be best positioned for origination growth in the second half of 2026.
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