Bank of America on June 23rd reported that a majority of consumers again say it is better to buy than rent, and that 20% of prospective buyers and homeowners used AI for homebuying research, a combination likely to influence leasing and retention across Philadelphia.
National Survey Points to Rising Buy Intent and AI Use
Bank of America’s latest Homebuyer Insights Report shows 53% of respondents favor buying over renting or moving in with family, with sentiment rebounding from a dip in 2024.
The report also notes 20% used AI tools in the past year, including 28% of Millennials and 32% of Gen Z.
Buyers still favor human expertise for key steps, with preferences for in-person tours and legal or contractual guidance.
Affordability Pressures and Easing Lock-in Shift Move-up Timelines
Affordability remains the primary headwind, with 58% citing high prices and 47% pointing to interest rates.
Fewer buyers are waiting for better conditions, with 71% delaying until prices or rates fall compared with 75% last year.
More homeowners plan to transact soon: 52% expect to buy another home and 22% aim to do so within a year.
The lock-in effect is easing as more consumers would accept higher rates for a more affordable area, a dream home, or a better location.
Impacts on Philadelphia Leasing, Turnover and Unit Mix
A swing toward buying can draw some renters into ownership at renewal, creating turnover risk in higher-earning renter segments and adding uncertainty to near-term occupancy.
Bank of America Institute analysis indicates rent payments are declining as renters trade down, which points to softer absorption for larger or higher-rent units and relatively firmer demand for smaller or lower-cost options.
These shifts can affect leasing velocity, concessions strategy and vacancy windows across managed properties.
AI-Supported Searches Reshape Inquiry Sources
Surveyed consumers most often use AI to estimate affordability and payments, learn about the process, and research neighborhoods and values, which can concentrate early inquiries on cost breakdowns and area comparisons.
Leasing teams may increasingly field questions shaped by AI-generated summaries before prospects tour.
Prior coverage detailed AI becoming an early step in the homebuying journey, aligning with how prospects enter the rental pipeline.
What Operators Will Track Through 2026
Operators will watch renewal rates in renter cohorts most likely to purchase, lease-up times for larger units compared with smaller footprints, and the mix of inquiries influenced by AI.
Monitoring move-outs tied to purchase activity and evaluating concession exposure where renters are trading down will be central to maintaining occupancy.
For national context on these shifts, see more Americans favor buying over renting for the first time since 2023.