This lack of confidence is exacerbated by current market conditions. Higher interest rates and inflated home prices have deterred many would-be buyers, with 57% of respondents unsure if now is the right time to buy, up from 48% last year.
Despite these challenges, the desire for homeownership remains strong. 76% of prospective buyers still plan to purchase a home within the next five years, and 81% see renting as a temporary situation.
“Given the highly competitive homebuying market, renters are unsure whether now is the right time to buy,” said Matt Vernon, head of consumer lending at Bank of America. “That said, our research continues to show that the vast majority of prospective homebuyers overwhelmingly feel buying a home, now or in the future, is the best decision for them in the long run.”
The report also highlights the emotional toll of renting for many. 70% of renters expressed concerns about not building long-term equity, and 72% worried about the impact of rent increases on their finances.
In contrast, 89% of homeowners reported that owning a home brings emotional fulfillment rather than added stress. However, baby boomers are an exception, with 80% preferring to rent due to the freedom from property maintenance and financial burdens.
Source: mpamag.com