More Americans Favor Buying Over Renting for the First Time Since 2023
For the first time since 2023, a majority of consumers say it's better to buy a home in the current market: 53% favor buying over renting or moving in with family (47%). Homebuyer confidence is also on the rise with 32% feeling more confident in their ability to buy this year, versus 27% last year. Still, affordability remains a top barrier, with 58% citing expensive home prices and 47% citing high interest rates. Meanwhile, fewer respondents are waiting for improved market conditions before moving ahead: 71% say they're waiting for prices and rates to fall before buying, down from 75% in 2025.
AI Becomes Part of the Homebuying Journey
This year's report also found that 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 who used AI, top use cases include estimating affordability, mortgage payments or closing costs (57%), general education and research about the process (55%), and 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%).
Gen Z Adapts to Today's Market
As in previous years, Gen Z buyers continue to find creative ways to work toward homeownership. Some 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.
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2025 Homebuyer Insights Report Materials
Learn more about how prospective homebuyers are navigating the mixed signals of the housing market.