Homeownership has long held a place in the American imagination, but these days many Americans find themselves caught between a desire to own and the practical challenges of making it happen. Between high prices, high interest rates, and economic uncertainty, the decision of buy or rent is more complex—and more consequential—than it’s been in years. Here’s what current data tell us about how people are thinking, what’s driving them, and where things may head.
What Sentiment Looks Like Now
1. Uncertainty & Waiting
- A large share of prospective buyers and homeowners are unsure if now is a good time to buy. According to a Bank of America survey from mid-2025, 60% of current homeowners + potential buyers say they can’t tell whether it’s a good time or not. Bank of America
- Many are expecting mortgage rates and home prices to decline, and are waiting for more favorable conditions. In the same BOA survey, about 75% of prospective buyers believe both rates and prices will fall, and are delaying their purchases accordingly. Bank of America
2. Preference for Ownership Remains Strong, but AttitudesAre Nuanced
- Even amid the challenges, more people still prefer owning over renting. A New York Fed survey found that although the chance renters believe they’ll own someday has dropped, 72% of respondents still prefer or strongly prefer owning to renting. Investopedia
- According to Fannie Mae’s Home Purchase Sentiment Index (HPSI), buying remains the preferred choice among those who would move. For example, in some months of 2025 about 64-66% of respondents said if they had to move, they’d buy rather than rent. National Mortgage Professional
3. Affordability Is the Major Hurdle
- The biggest barrier by far is cost. Home prices are elevated, mortgage rates are higher than in recent low-rate periods, and down payments + closing costs burden many prospective buyers. Bankrate
- For non-owners desiring a home, nearly all point to affordability as the primary obstacle—income constraints, down payments, and price levels being too high. Bankrate
- Rent is also rising; the expectation is that rents will continue to climb faster than incomes. This increases the cost of renting, and for some makes renting seem less “temporary” than before. National Mortgage Professional
4. Regrets & Trade-Offs Among Buyers
- Many who have bought recently report that the financial stress and hidden costs of ownership are more intense than expected. Examples: maintenance, unexpected repairs, insurance, property taxes, etc. Clever Real Estate
- In the Bankrate survey, about 70% of homeowners say they would buy their home again, which means 30-plus percent have serious second thoughts or regrets about aspects of their purchase. Bankrate
- First-time buyers are more likely to feel over their heads financially after buying. Making compromises (on location, home features, price) is very common. Clever Real Estate
5. Economic & Job Market Anxiety
- Job security concerns are on the rise. Many consumers are cautious because they’re not confident about future income, or fear job loss. That undermines willingness to make big long-term financial commitments. National Mortgage Professional
- Inflation, cost of living pressures, and overall economic uncertainty are coloring the mindset. It’s not just housing; people are feeling squeezed across many fronts. National Mortgage Professional
Where Sentiment Seems to Be Heading
Based on recent data, some emerging trends and expectations:
- A delayed buyer market: Many people are waiting out unfavorable conditions (high rates, high prices) rather than jumping in. If rates ease or prices plateau/decline in certain markets, there may be a surge in buying.
- Renting may become more “sticky” for some: For people priced out or facing uncertainty, renting isn't just a temporary stop-gap—it may become the longer-term choice, perhaps with compromises (e.g. location, size).
- Demographic differences intensify: Younger generations (Gen Z, younger Millennials) are more burdened by affordability, student debt, etc. They’re more likely to delay buying or to make compromises. Older homeowners are more confident about their decisions, but many still express regret about particular aspects.
- Increased desire for hybrid or creative paths: More people may try co-living, co-ownership (with family/friends), or living in less expensive areas (further from job centers) as a way to make ownership more accessible. Some are also considering fixer-uppers or homes needing renovation.
Implications for Buyers, Renters, and Market Observers
- For Buyers: It’s crucial to understand total cost—not just monthly payment, but maintenance, taxes, insurance, and unexpected expenses. Be very deliberate about what compromises you are willing to make.
- For Renters: Know the trade-offs: lower commitment and more flexibility vs. lack of asset building. Monitor market conditions—there may be opportunities if housing becomes temporarily more affordable.
- For Policymakers & Builders: The sentiment data indicate that supply constraints, affordability, and financing costs are major blockers. Policies that help reduce these burdens (down payment assistance, rate support, zoning reforms to increase supply) might shift sentiment.
- For Lenders & Real Estate Professionals: Transparency on costs and education about what owning really entails could help set better expectations. Also, being responsive to rate and price shifts is likely to matter very much in influencing when people decide to make their move.
Bottom Line
Buying vs. renting is no longer a clear “gap-filler”decision—it’s a strategic choice shaped heavily by timing, cost, and tolerance for risk. While the dream of homeownership remains strong for most Americans, many find the path increasingly bumpy. Economic pressures, high prices, and rate uncertainty are the primary draggers. But if the market shifts—interest rates fall, home inventories loosen, prices moderate—many who’ve been waiting may move.
If you’re in the position of deciding now between renting and buying, the sentiment data suggests you’re far from alone in feeling torn. The best call tends to be one grounded in realistic financial assessment, careful planning, and recognition of what trade-offs you personally are willing to accept.
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