TULSA, Okla. — More people in the South now favor buying a home over renting. Still, new research also shows significant financial barriers are keeping many prospective buyers, especially first-timers, on the sidelines.
For the first time since 2023, a majority of Americans say it is better to buy a home than to rent or move in with family, according to Bank of America's 2026 Homebuyer Insights Report.
In the South, 53% of respondents now favor buying over renting or moving in with family.
But a separate new study from FICO, the credit score company used by 90% of top U.S. lenders, paints a more complicated picture.
"Many consumers are still actively pursuing home ownership, but there are significant financial barriers, most notably high home prices and rising interest rates," Jenelle Dito said.
FICO's National Homeownership Survey found 74% of prospective homebuyers, and 85% of first-time homebuyers, say financial obstacles have prevented them from buying a home this year.
High home prices and high interest rates ranked as the top two barriers, cited by 34% and 33% of respondents, respectively.
Down payments are a major source of concern. For a conventional home loan, a down payment is typically 20% of the purchase price.
"We definitely saw a lot of concern around that down payment cost. That obviously correlates heavily with the high home prices," Dito said.
However, many buyers may qualify for programs that can dramatically reduce the down payment required.
Some buyers are also making geographic compromises to find something within their budget.
"Buy in a place that wasn't their first choice, so that they can find something more affordable," Dito said.
The FICO survey also found widespread confusion about the home-buying process itself. Nearly 3 in 5 Americans, 59%, say they don't completely understand the steps involved in buying a home. That figure rises to 64% among first-time home buyers.
For many, home-ownership carries deep personal meaning. Americans most commonly say owning a home represents independence (57%) and financial stability (53%). Among first-time buyers, 49% see it as achieving a major life milestone.
The Bank of America report found 94% of Southern respondents say home-ownership provides stability, and 34% say they are more confident in their ability to buy a home this year.
Still, many are holding out. In the Bank of America survey, 72% of prospective home-buyers said they expect home prices and interest rates to fall and are waiting until that happens before purchasing.
The report also found that one in five buyers and current home-owners, that's 20%, used AI tools or chatbots in the past year for home buying research. Even so, prospective buyers still prefer human expertise for key steps, including touring homes (54%) and legal or contractual advice (54%).
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
Stay in touch with us anytime, anywhere --
- Download our free app for Apple, Android and Kindle devices.
- Sign up for daily newsletters emailed to you
- Like us on Facebook
- Follow us on Instagram
- Watch LIVE 24/7 on YouTube
