Americans Favor Buying a Home Over Renting Again: What It Could Mean for South Jersey Homebuyers

For generations, homeownership has been closely tied to the American Dream. Owning a home can provide stability, the opportunity to build equity, and the freedom to make a property truly your own. But over the past several years, higher home prices, elevated mortgage rates, limited housing inventory, and affordability concerns caused many Americans to question whether buying a home still made sense.

Now, that sentiment appears to be changing.

For the first time since 2023, a majority of respondents in a recent survey said they would prefer to buy a home rather than rent or move in with family. According to the survey, 53% of participants preferred buying compared with 47% who preferred renting.

While the difference is relatively small, the shift may be an important indication that confidence in homeownership is beginning to return.

For prospective homebuyers in South Jersey and throughout New Jersey, it is also a good reminder that deciding whether to buy shouldn't be based solely on headlines about mortgage rates or home prices. Your finances, goals, available mortgage programs, down payment options, and expected length of time in the home can all play a major role in determining whether buying makes sense.

Americans Are Becoming More Positive About Homeownership

Housing affordability has been one of the biggest obstacles facing potential buyers in recent years.

Mortgage rates increased substantially from the historically low levels available earlier in the decade. At the same time, home prices remained relatively strong in many markets because the number of homes available for sale remained limited.

Those conditions caused some potential buyers to postpone purchasing a home.

But attitudes appear to be improving.

In addition to 53% of survey respondents saying they would prefer buying over renting, the survey found an 11% increase in respondents who believe a home is a valuable investment and that homeownership provides stability.

There was also a 5% increase in respondents who said they feel more confident in their ability to purchase a home this year.

That increased confidence is significant.

It doesn't necessarily mean buying a home has suddenly become easy. Instead, buyers may be adjusting to today's housing market and beginning to recognize that waiting indefinitely for the "perfect" combination of home prices and mortgage rates has its own drawbacks.

Why Buying a Home Is Becoming Attractive Again

There are several reasons buyers may be reconsidering homeownership.

One of the biggest is the long-term financial difference between renting and owning a home.

When you rent, your monthly payment provides you with a place to live, but you generally aren't building ownership in the property. When you purchase a home with a mortgage, part of your monthly principal and interest payment goes toward paying down your loan balance.

Over time, that can help build equity.

Homeownership can also provide something many renters value increasingly: housing stability.

Renters may face rent increases, lease changes, or a landlord's decision to sell a property. Homeowners with a fixed-rate mortgage generally have much more predictability regarding the principal-and-interest portion of their housing payment, although property taxes, homeowners insurance, HOA fees, and other expenses can change.

For people planning to remain in an area for several years, that stability can be an important consideration.

Renting Isn't Automatically the Cheaper Option

One of the most common assumptions in today's market is that renting must be financially better because mortgage rates and home prices are higher than they were several years ago.

That isn't necessarily true.

The better comparison isn't simply:

Rent payment vs. mortgage payment.

A more useful analysis considers the complete financial picture.

For a potential homebuyer, that can include:

• Current monthly rent

• Expected future rent increases

• Estimated mortgage payment

• Property taxes

• Homeowners insurance

• Mortgage insurance, when applicable

• Maintenance and ownership costs

• Available down payment

• Closing costs

• Potential home appreciation

• Principal paid down over time

• Expected length of ownership

For some households, renting will absolutely remain the better option. Someone expecting to relocate in a year or two, for example, may value the flexibility of renting.

For others, however, continuing to rent simply because mortgage rates are higher than they were several years ago may not necessarily be the best long-term strategy.

The important question is not whether buying is always better than renting.

It's whether buying makes sense for your specific situation.

You May Not Need a 20% Down Payment to Buy a Home

Another reason some renters remain on the sidelines is the belief that purchasing a home requires an enormous down payment.

Many prospective buyers still assume they need 20% down.

Depending on the mortgage program and the borrower's qualifications, that may not be necessary.

There are mortgage programs that can allow qualified borrowers to purchase with significantly less than 20% down. Depending on eligibility and circumstances, buyers may have access to conventional financing, FHA loans, VA loans, USDA financing, or other mortgage and down-payment-assistance options.

The appropriate program depends on factors including credit, income, debts, available assets, property type, occupancy, and purchase location.

That's why talking with a mortgage professional before beginning your home search can be valuable.

Instead of guessing what you can afford, you can determine what programs may be available, approximately how much cash you may need, and what price range produces a comfortable monthly payment.

Mortgage Rates Matter — But They're Only Part of the Decision

Mortgage rates receive enormous attention, and understandably so.

The interest rate on your mortgage affects your monthly payment and the total interest paid over the life of the loan.

But trying to perfectly time mortgage rates can be extremely difficult.

If rates decline, buyers who have been waiting may return to the housing market at the same time. Increased buyer demand can potentially create more competition for available homes.

That doesn't mean you should rush to purchase a property because rates might change.

It means today's rate shouldn't necessarily be viewed in isolation.

A better approach is determining whether you can comfortably afford the home at today's payment.

If mortgage rates improve later and refinancing makes financial sense, refinancing may potentially provide an opportunity to reduce the rate or monthly payment. There is no guarantee, however, that rates will decline or that refinancing will be beneficial or available.

Your purchase should make financial sense based on today's numbers rather than depending on a future refinance.

South Jersey Buyers May Have More Options Than They Realize

For buyers searching for homes throughout South Jersey, affordability can vary considerably from one community to another.

A homebuyer's budget may produce very different options depending on property taxes, home prices, housing inventory, and location.

That makes mortgage planning particularly important.

Before deciding that buying a home is out of reach, it can be helpful to review the actual numbers.

You may discover that you need less money for a down payment than expected. You may qualify for a mortgage program you weren't aware of. Adjusting your target price slightly could potentially produce a payment that works comfortably within your budget.

Conversely, the numbers may show that waiting and improving your financial position is the smarter move.

Either result is valuable because you're making the decision using real numbers rather than assumptions.

Pre-Approval Can Be the First Step Toward Homeownership

If you're considering purchasing a home in South Jersey or anywhere in New Jersey, mortgage pre-approval can provide a much clearer picture of your options.

During the mortgage pre-approval process, your lender can review important financial information such as income, assets, debts, and credit.

That can help determine:

• An estimated homebuying price range

• Potential mortgage programs

• Estimated down payment requirements

• Approximate closing costs

• Estimated monthly mortgage payment

• Whether mortgage insurance may apply

• Potential issues to address before making an offer

A strong pre-approval can also help when you're ready to make an offer because sellers generally want to know that prospective buyers have already spoken with a lender.

Should You Buy a Home in 2026 or Keep Renting?

There isn't one answer that applies to everyone.

Buying may make sense if you have stable income, expect to remain in the area for several years, have sufficient funds for the transaction and reserves, and can comfortably handle the payment and responsibilities of homeownership.

Renting may make more sense if you expect to relocate soon, need greater flexibility, aren't financially prepared for ownership expenses, or simply aren't ready to purchase.

But if you've been renting primarily because you assumed you couldn't qualify for a mortgage, it's worth finding out whether that assumption is actually correct.

The recent shift in consumer sentiment suggests more Americans are beginning to reach the same conclusion: homeownership can still be a valuable long-term goal, even in a challenging housing market.

Thinking About Buying a Home in South Jersey?

If you're currently renting and wondering whether buying a home could make sense, the first step doesn't have to be touring houses.

Start with the numbers.

A personalized mortgage review can help you understand your potential buying power, estimated monthly payment, available loan programs, and approximately how much money you may need for your down payment and closing costs.

Even if you're several months away from purchasing, getting the information early can give you time to prepare.

Michael DeSanto | Mortgage MikeCrossCountry MortgageNMLS #1766709

Whether you're a first-time homebuyer, moving into a larger home, downsizing, or simply trying to decide whether buying or renting makes more financial sense, I'm happy to help you evaluate your mortgage options and create a plan for your next move.

This information is for educational purposes only. Mortgage program availability, rates, terms, and qualification requirements vary based on borrower and property circumstances. A mortgage application and review are required to determine eligibility.