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The Rise of Cash Buyers in the Housing Market in 2025

In the first half of 2025, a noteworthy trend has emerged in the real estate market, as nearly one in three homes sold were purchased entirely with cash, a report by Realtor.com® reveals. This significant statistic underscores the enduring influence of cash buyers in today’s housing landscape, which remains particularly pronounced when compared to pre-pandemic data where cash purchases averaged about 28.6%.

The Context of Cash Transactions

The analysis details how cash buyers, a group comprising wealthy households, investors, and individuals purchasing second homes, continue to dominate both lower and upper tiers of the market. Despite a slight decrease from last year's figures, the current share of all-cash transactions stands at an impressive 32.8%. This sustained prevalence is indicative of the competitive nature of cash transactions as they tend to give buyers a significant edge in today’s fluctuating market.

Danielle Hale, the chief economist at Realtor.com®, emphasizes that the visibility of cash buyers has increased in today’s environment. She states, “Cash buyers have long been a fixture in the market, but their influence is more pronounced today than in pre-pandemic years.” This increased interest from cash buyers creates additional challenges for traditional mortgage-dependent buyers already facing hurdles in the affordability landscape.

Who Are the Cash Buyers?

Cash transactions exhibit a distinct U-shaped pattern across various price points. A remarkable two-thirds of homes priced under $100,000 and over 40% of homes valued at more than $1 million were acquired with cash. Notably, the cash share exceeded 50% among homes priced above $2 million. This trend highlights a significant factor: cash purchases are often more accessible at the extremes of the market, where wealthier buyers dominate, compared to lower-priced homes where financing barriers exist.

Older households or buyers with substantial equity from previous home sales are more inclined to opt for cash purchases. In contrast, high-wealth individuals are less affected by rising borrowing costs and typically evaluate their financial choices beyond immediate mortgage implications.

Regional Variations in Cash Purchases

The prevalence of cash buyers varies significantly across different states and metropolitan areas, primarily due to local market dynamics, home prices, and buyer demographics. States like Mississippi (49.6%), Montana (46.0%), and Idaho (45.0%) top the list in terms of cash share, showcasing a preference for cash purchases in regions with lower home prices or greater wealth concentration among older buyers seeking second homes. In high-demand markets such as Miami, cash purchases accounted for nearly 43% of sales, revealing the underlying competition from affluent buyers.

Conversely, younger and high-cost markets like Seattle (17.9%), San Jose (20.6%), and Denver (20.7%) recorded the lowest cash shares. These areas often feature a high proportion of homeowners with existing mortgage debt, illustrating their susceptibility to shifts in mortgage rates, which could potentially influence their purchasing power in the market.

Shifts Reflecting Market Dynamics

Comparatively, year-over-year changes highlight evolving market dynamics, with states like West Virginia and New Mexico experiencing an uptick in cash transactions. This growth can be attributed to an influx of wealthier households and increasing luxury market demands. Contrastingly, states such as Hawaii and New Hampshire witnessed decreased cash shares, reflecting a cooling luxury market or a resurgence of more mortgage-reliant buyers.

The state of Texas, in particular, has reported substantial rises in cash transaction percentages, driven by both in-migration and renewed investor activity in metropolitan areas.

Looking Ahead: The Future of Cash Transactions

While cash buyers currently maintain a dominant stance in the housing market, there exists potential for a shift if mortgage rates decrease, which could facilitate a return of finance-friendly buyers. As the market remains competitive, cash sales appear to exemplify the growing concentration of wealth shaping today's housing environment.