Why suburban homebuyers are shifting from ‘wait-and-see’ to action in 2026
For the past several years, the narrative surrounding the suburban housing market has been defined by hesitation. Faced with elevated interest rates and tight inventory across our collar counties, prospective homebuyers have largely adopted a “wait-and-see” posture.
But as we move through the second half of 2026, a fundamental shift is underway.
According to the latest Bank of America Homebuyer Insights Report, there is a renewed sense of urgency among Midwestern consumers. Rather than waiting on the sidelines for a perfect macroeconomic climate, buyers are taking control of their housing decisions, a shift that could help bring more activity back to local suburban communities.
A renewed belief in suburban foundations
The emotional and financial pull of homeownership remains strong in our region. According to the report, 54% of Midwestern respondents favor buying a home over renting or moving in with family, outpacing the national average of 53%.
This preference is anchored in a deep belief in the long-term value of homeownership. An overwhelming 90% of Midwesterners view a home as a valuable investment, up from 79% in 2025. Additionally, 93% agree that owning a home provides life stability, up from 83% last year.
Buyer optimism also is growing, with three in 10 Midwesterners saying they are more confident in their ability to buy a home this year. In the Chicago suburbs, where strong schools, parks, and vibrant downtowns define many communities, buying a home represents putting down roots for the future.
Unlocking the suburban gridlock
For several years, the housing market has grappled with the “lock-in effect,” where homeowners felt anchored to historically low mortgage rates, which limited inventory. However, our latest data suggests that gridlock is beginning to ease.
Regionally, the share of prospective buyers waiting for prices and interest rates to drop has fallen to 71%, down from 75% in 2025. Buyers are realizing that timing the market perfectly is difficult and are instead focusing on milestones that fit their families.
Current homeowners also are beginning to make their next move. Nearly half of Midwestern homeowners expect to purchase another home in the future, with 18% planning to buy within the next year. As more homeowners upgrade or downsize, additional inventory could return to local markets.
The rise of the flexible, tech-savvy buyer
To make homeownership a reality, buyers are demonstrating greater flexibility, with roughly three-quarters of buyers willing to relocate to a more affordable area, purchase a home that meets their family’s needs, or prioritize proximity to quality schools and convenient transit options.
Artificial intelligence also is becoming part of the home-buying journey, with 16% of Midwestern buyers using AI tools. Respondents most commonly use AI to estimate affordability, navigate the home-buying process, and research neighborhood safety and market trends.
Yet even in a digital-first era, real estate remains a relationship-driven business. Most buyers still prefer human guidance when touring homes and navigating legal or contractual decisions.
What this means for the local economy
An active housing market is a powerful economic engine. Every home purchase in Chicagoland creates ripple effects for local businesses, from hardware stores and landscapers to contractors, restaurants, and downtown retailers.
The message from the 2026 Homebuyer Insights Report is clear: the desire for homeownership remains steadfast. By combining digital tools with early financial planning, including exploring down payment assistance programs and getting pre-approved by a trusted lending expert, prospective buyers can enter today’s market with greater confidence and help strengthen the communities they call home.
• Tenny Ahn is senior vice president and lending market leader for Bank of America Chicago.