Business and Finance
The Growing Dilemma: Renting vs. Buying a Home
“Renting or buying? A dilemma growing among prospective homeowners as they question the financial impact. Find out the emotional and financial value associated with homeownership in this Bank of America report.”
Buying a home has always been considered a significant investment, a cornerstone of financial stability and future security. However, a recent Bank of America Homebuyer Insights Report reveals a growing number of prospective homebuyers who fear that renting could have detrimental effects on their financial future. With high interest rates and soaring home prices, the uncertainty surrounding the decision to rent or buy has only intensified. This article delves into the reasons behind this dilemma and explores the emotional and financial value associated with homeownership.
The Rising Uncertainty:
The report reveals that 57% of respondents are unsure whether it is the right time to buy a home, compared to 48% from the previous year. This trend is particularly prominent among first-time homebuyers, with 62% expressing uncertainty. Higher interest rates and escalating home prices have left renters questioning the feasibility of homeownership in the current market. Matt Vernon, Head of Consumer Lending at Bank of America, recognizes this growing concern but emphasizes that research consistently supports the belief that owning a home is the best long-term decision for most prospective homebuyers.
Population Flows and Supply Challenges:
Complicating the decision-making process are the continuing population flows across the United States. As stated in the Bank of America Institute’s On the Move publication, cities in the South have experienced substantial inflows of people, primarily driven by younger generations. Despite an increase in housing supply to accommodate these changes, the supply of rental properties in some areas falls short of meeting the demands of growing populations. Consequently, while 37% of respondents prefer renting for now, 81% of prospective buyers still plan to purchase a home in the near future.
Emotional Value of Homeownership:
The report highlights the emotional and financial benefits of homeownership, with a majority of homeowners and prospective homebuyers recognizing these advantages. Homeownership offers a sense of permanence, emotional stability, control over living space, and fulfillment, according to the survey. However, baby boomers appear to be an exception to this outlook, with 80% favoring renting over buying. They value the freedom from property maintenance, financial responsibilities, and enjoy the flexibility of choosing when and where to move.
Lack of Confidence and Lessons Learned:
Prospective homebuyers also express a lack of confidence in various aspects of the homebuying process, including understanding financing, interest rates, homebuying terminology, and grant programs. However, meeting with lending specialists can be beneficial in exploring assistance programs, such as Bank of America’s down payment and closing cost grants. Furthermore, the report reveals that 66% of current homeowners would have done something differently when buying their first home, such as saving more for a down payment or considering other neighborhoods.
The Bank of America Community Homeownership Commitment:
The Bank of America Community Homeownership Commitment is a $15 billion program aimed at assisting low- and moderate-income homebuyers. This initiative is designed to address the lack of confidence expressed by prospective buyers in understanding various aspects of the homebuying process. Through the commitment, Bank of America offers down payment and closing cost grants, as well as access to lending specialists who can provide guidance on financing options, interest rates, and grant programs. The program also takes into account the lessons learned by current homeowners, with the goal of empowering potential buyers to make informed decisions and achieve successful homeownership.
About Bank of America Institute
Bank of America Institute is dedicated to uncovering powerful insights that move business and society forward. Established in 2022, the Institute is a think tank that draws on data and analyses from across the bank and the world to provide timely and original perspectives on the economy, sustainability, and global transformation. The Institute leverages the depth and breadth of the bank’s proprietary data, from approximately 68 million consumer and small business clients, 56 million verified digital users, $4.2 trillion in total payments in 2022 and $1.4 trillion in consumer and wealth management deposits. From this robust data set, the Institute provides a unique perspective on the health of the economy. It also elevates thought leadership from throughout the bank that addresses long-term trends and shares these findings with the general public.
Bank of America
Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 69 million consumer and small business clients with approximately 3,800 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 57 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock is listed on the New York Stock Exchange (NYSE: BAC).
For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.
SOURCE Bank of America Corporation
financial wellness
Life insurance is on the to-do list. Right under cleaning out the garage.
No matter how you define “adulting,” getting life insurance tends to be one part of the to-do list that keeps getting set on a procrastination loop. New survey data backs that up: there are plenty of other tasks adults would rather focus on first.
(Sheeka Sanahori) Being an adult comes with a never-ending list of responsibilities: Cook dinner. Scrub the bathroom. File taxes. The tasks grow even longer when sharing a household with a partner, building a family, or taking care of others. No matter how you define “adulting,” getting life insurance tends to be one part of the to-do list that keeps getting set on a procrastination loop.
New survey data backs that up: there are plenty of other tasks adults would rather focus on first.
The Adulting Task Americans Keep Avoiding
According to the 2026 Life Happens Life Insurance Survey, a financial literacy nonprofit organization, 39% of U.S. adults would rather clean out their email inbox than figure out their life insurance needs. Another 31% would rather clean out the garage or basement. One in five U.S. adults would be willing to sit on hold with customer service for three hours before life insurance planning. Even though many adults have it somewhere on their list, nearly half (46%) say they’ll either deal with it later or not at all.
They Know It Matters
Nearly a third of adults have already figured out a life insurance plan, and they feel good about their decision. Others are feeling more conflicted: 14% have a policy, but they’re not sure if they have enough. Another 12% say they either don’t know where to start or they think it’ll be too expensive.
It’s no wonder people are putting it off: Navigating a new-to-them form of financial planning can come with a lot of complicated emotions. Four in 10 feel either overwhelmed, anxious, or some combination of both. Sixteen percent of U.S. adults feel guilty for putting it off, but when the outcome is more procrastination, that feeling lingers.
Why Later Keeps Winning
If you’ve ever faced an important decision without having enough information to make an informed choice, you know how stressful it can be. While the generations have different takes on making major decisions with a gut feeling or “pure vibes,” most of the time, people want to feel like they’re making an informed choice. Forty-five percent of U.S. adults say cost concerns, confusion or procrastination are the main reasons they have delayed or would delay looking into life insurance. For more than one in five, the plan is to seriously look at it when they feel more financially stable. For 12%, they say they’ll do it when they’re older.
Men tend to feel more confident about their life insurance decisions to date; 53% of men vs. 41% of women feel confident their family would be financially protected.
The First Step Feels Bigger Than It Is
Learning more about life insurance, how it’s priced and how it works could help get many consumers out of their procrastination loop. A quarter of people say they’d make a decision if they learned it was easier to get than they previously thought. Thirty percent would make the purchase if they learned it was more affordable than they believed it to be. Others need an experienced professional to talk to or an online calculator tool to give them guidance.
Methodology: Life Happens commissioned Atomik Research to conduct an online survey of 2,000 adults, including 700 Gen Z respondents, 700 millennials, and 600 Gen X respondents throughout the United States. The margin of error for the overall sample is +/- 2 percentage points and +/- 4 percentage points for each generational sample, with a confidence level of 95 percent. Fieldwork took place between July 14 and July 20, 2026. Atomik Research, part of 4media group, is a creative market research agency.
Photo courtesy of Shutterstock (couple using computer)
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Consumer Corner
3 Practical Ways to Build Financial Confidence
Financial Confidence: Economic uncertainty, fueled by persistent inflation, stagnant wages and a cooling job market, has led many Americans to feel like they’re falling behind, even when they’re doing many of the “right” things financially. This expert guidance can help you be more intentional with the choices you make so your spending reflects your priorities.
Building Financial Confidence
(Feature Impact) Nearly everyone is carrying some level of insecurity about their financial future, even those who are trying to plan ahead. Economic uncertainty, fueled by persistent inflation, stagnant wages and a cooling job market, has led many Americans to feel like they’re falling behind, even when they’re doing many of the “right” things financially.
Though many are paying down debt, saving for retirement and building an emergency fund, they’re still asking, “Am I doing enough?” In fact, only 21% of Americans are financially prepared and assured in their ability to protect their futures, according to Mutual of Omaha’s 2026 Protection Index Survey – a proprietary research study conducted with quantilope – which shows overall financial confidence has declined.
“Many people believe they need to wait until they have more money, more certainty or the perfect plan before taking action,” said Nate Hobson, vice president of sales, Advisor Network at Mutual of Omaha. “But financial confidence is usually built through consistency rather than perfect timing. Even small steps today can make a meaningful difference over time.”
While being financially secure means different things to different people, according to the survey – such as having little or no debt (34%), owning a home (29%), maintaining emergency savings (27%), saving for retirement (26%) or having insurance coverage (26%) – building financial confidence doesn’t have to translate to cutting out everything you enjoy. Instead, this expert guidance can help you be more intentional with the choices you make so your spending reflects your priorities.
Create a Financial Cushion
Whether it’s a car repair, medical bill or temporary loss of income, unexpected expenses happen.
Having even a modest emergency fund can reduce financial stress and reliance on credit cards or loans. If saving several months of expenses feels overwhelming, start with a smaller milestone. Consistency matters more than the starting amount.
Put Good Financial Habits on Autopilot
One of the easiest ways to make progress is removing the need to make the same decision every month. Consider setting up automatic contributions to savings and retirement accounts, regular investment deposits and automatic bill payments, which can help you build financial security even during busy or uncertain times.
Taking a look at everyday spending habits can also make a difference. The survey showed small, everyday choices add up over time, such as cutting non-essential spending (57%), using rewards programs (54%), comparing prices or switching providers (39%) and following a monthly budget (38%). That could mean bringing your lunch to work instead of grabbing takeout, taking a few extra minutes to compare prices at the grocery store or using rewards to get more value from the purchases you’re already making.
Protect What You’re Building
Saving and investing are important pieces of financial protection, but they’re only part of the equation. Protecting income, loved ones and other financial assets is equally important.
For families, life insurance can provide financial protection during key earning and caregiving years, helping replace income if the unexpected happens. For those focused on covering final expenses, guaranteed whole life insurance can help cover funeral and other end-of-life costs. If you’re approaching or living in retirement, an annuity may provide a reliable stream of income that can complement other retirement resources and reduce uncertainty.
A financial professional can help determine which options best fit your goals and circumstances. To see how much coverage is right for your situation, Mutual of Omaha’s Life Insurance Calculator can provide a personalized estimate based on your income, financial obligations and long-term goals.
For more practical advice to build financial confidence, visit MutualofOmaha.com.
Taking Action with an Extra $1,000
If you unexpectedly received $1,000, your response with the extra cash may reveal your financial priorities and where additional planning could strengthen financial resilience.
Providing a window into Americans’ financial priorities, respondents in Mutual of Omaha’s 2026 Protection Index Report said they would:
- Pay down debt (25%)
- Add it to savings (21%)
- Use it for everyday expenses (14%)
- Invest it (9%)
Photos courtesy of Shutterstock
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financial wellness
Survey: Credit isn’t a backup plan. For millions of Americans, it’s how they buy groceries.
Credit isn’t a backup plan. Credit cards were once reserved for expensive purchases or for added security in buying online. For households managing debt, they have become a way to cover everyday purchases like groceries.
Survey: Credit isn’t a backup plan. For millions of Americans, it’s how they buy groceries.
(Sheeka Sanahori) Sixty-six percent of Americans carrying at least $10,000 in unsecured debt used a credit card to buy groceries in the last year, more than any other essential expense, according to a new survey. Credit cards were once reserved for expensive purchases or for added security in buying online. For households managing debt, they have become a way to cover everyday purchases like groceries.
Accredited Debt Relief, a company specializing in debt relief, commissioned Atomik Research in May 2026 to survey 2,000 U.S. adults with at least $10,000 in unsecured debt. Along with groceries, 47% say they’ve used credit for gas or transportation, 45% for utilities and 33% for rent or housing costs.
For people struggling with cost-of-living pressures, using unsecured debt can begin as a quick solution to cover household needs for the moment. At first, it’s just milk and eggs. But then an unexpected expense happens: a flat tire, an unusually high electricity bill, a medical cost that was not in the budget. The balance adds up and, according to the survey data, this also creates stress for consumers.
This isn’t discretionary spending. The data reflects a growing reliance on consumer debt to cover basic cost-of-living needs. However, relying on borrowed money without an executable plan for repaying it could mean that one day, the runway for taking care of such expenses runs out.
A significant share of respondents report relying on credit as a routine part of managing their personal finances. This routine could become a long-term debt cycle for many households. Nearly three in ten say that they rely on credit or borrowing to get through a typical month. This reliance appears to be growing, with a third saying they depend on credit more than they did a year ago. For those consumers, what may have once been a stopgap has become an increasingly common and ongoing financial strategy.
The growing debt cycle by unsecured borrowing is taking an emotional toll on these consumers, too. A quarter of respondents are concerned about their financial future and 12% feel a stronger concern that they’re at risk of long-term financial instability.
A lack of savings makes the cycle harder to break. Only 28% of respondents say they can both cover expenses and save. When there is little room between income and expenses, every disruption becomes harder to absorb.
Unexpected expenses, such as medical bills or car repairs, lead 19% of respondents to take on additional debt every time, and 27% most of the time. These are the kinds of costs households are often told to prepare for, but preparation requires room. For many consumers, that room does not exist.
Debt builds over time when credit becomes part of monthly operations. Some of these consumers say they don’t earn enough to make meaningful changes to their current financial situation. Among those surveyed, 45% report that their income is enough to get by but not get ahead. Many report that their financial situation has caused them to put off taking a vacation or begin building savings.
When asked about the biggest barrier to reducing debt, 29% of respondents listed the same obstacle: the cost of everyday expenses. That number connects how debt builds with why it persists.
When everyday expenses become part of ongoing credit card debt, the balance can grow without notice. Even when a consumer gets their next paycheck, if it’s already accounted for, they may not be able to make much progress in paying down their debts. A few recurring costs, spread across months, can become a greater financial weight. The result is debt that builds, because it’s tied to the basic cost of living. It also can create a stressful way to live; more than three in ten people say their current debt situation has affected their mental well-being.
Without meaningful changes, whether through increased income, debt relief or other financial support, these households may continue to rely on consumer debt and unsecured credit as a daily necessity rather than a strategic financial tool or occasional supplement. The risk is that life’s most basic needs become harder to maintain in the long run.
Methodology
Accredited Debt Relief commissioned Atomik Research to conduct an online survey of 2,000 U.S. adults with at least $10,000 in unsecured debt. The margin of error is plus or minus 2 percentage points at a 95 percent confidence level. Fieldwork was conducted between May 11-14, 2026. Atomik Research, part of 4media group, is a creative market research agency.
Photo courtesy of Shutterstock (tap to pay)
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