One in Three Homes Bought With Cash in 2025
A Realtor.com analysis shows cash buyers thriving at the high and low ends of the market as financed buyers remain concentrated in the middle.
AUSTIN, Texas — Nearly one in three homes sold in the first half of 2025 were bought entirely with cash, according to a new analysis from Realtor.com. The report highlights how cash buyers, ranging from equity-rich households to investors and second-home purchasers, continue to wield outsize influence in today's housing market.
Nationwide, 32.8% of home sales in the first half of 2025 were all-cash transactions. That share is down slightly from last year but remains well above pre-pandemic norms, when cash averaged just 28.6% of sales. Cash buying surged during the pandemic as investors competed for scarce listings, and it remains a powerful factor even as the market has cooled.
"Cash buyers have long been a fixture in the market, but their influence is more pronounced today than in pre-pandemic years," said Danielle Hale, chief economist at Realtor.com. "High-wealth buyers, investors, and those with significant equity can move quickly and often win out in competitive situations. For traditional, mortgage-reliant buyers, this can add another hurdle in an already challenging affordability environment."
Who's paying cash
Cash dominates at the extremes of the market: Two-thirds of homes under $100,000 and more than 40% of homes over $1 million were bought with cash, with the share topping 50% for homes above $2 million. This U-shaped pattern likely reflects investor activity, less access to financing, or credit barriers at the low end, and wealth concentration at the high end.
Older households and buyers with significant equity are especially likely to purchase without a mortgage, often using proceeds from a prior home sale. High-wealth buyers, meanwhile, are less influenced by borrowing costs and more likely to decide between cash and financing based on broader financial considerations.
Cash counts most in affordable and second-home markets
The prevalence of cash buyers varies sharply across the country, driven by home prices, buyer demographics, and local market dynamics.
Mississippi (49.6%), Montana (46.0%), Idaho (45.0%), Hawaii (44.9%) and Maine (44.4%) topped the list for all-cash share in the first half of 2025. In Mississippi, the high share of case sales reflects the state's lower home prices and more limited access to credit in some rural areas. By contrast, Hawaii and Maine attract affluent second-home buyers, many of them older and equity-rich. Meanwhile, Montana and Idaho have seen elevated shares as out-of-state buyers compete for homes.
Among metros, Miami (43.0%), San Antonio (39.6%), Kansas City, Kan. (39.2%), Birmingham, Ala. (38.8%), Houston (38.8%) and St. Louis (38.1%) led the nation in cash share for the first half of 2025. These markets reflect different drivers, from international and high-end demand in Miami and Houston to investor and affordability dynamics in San Antonio, Birmingham, Kansas City and St. Louis.
By contrast, younger, high-cost, job-centered markets such as Seattle (17.9%), San Jose (20.6%), Denver (20.7%) and Washington, D.C. (21.5%) saw the lowest cash shares, and in many of these areas large shares of current homeowners have mortgage debt, suggesting more sensitivity to mortgage rate trends.
Year-over-year shifts highlight changing dynamics
West Virginia (+5.3%), New Mexico (+4.0%), Texas (+2.8%) and New York (+2.0%) posted the biggest increases in cash share, fueled by low-price investor activity, in-migration of wealthier households, and rebounding luxury demand. By contrast, Hawaii (-4.0%), New Hampshire (-3.7%) and North Dakota (-3.6%) saw the sharpest declines as luxury activity cooled or more mortgage-dependent buyers returned to the market. Texas metros in particular saw some of the biggest year-over-year gains, fueled by in-migration, institutional buyers, and renewed investor activity.
Cash advantage remains, though lower rates could shift share
While cash buyers currently hold a strong edge, the balance could shift if mortgage rates decline. Lower borrowing costs would likely draw more financed buyers back into the market, particularly first-time buyers who have been sidelined by steep monthly payments.
"Cash sales underscore the wealth concentration shaping today's housing market," said Hannah Jones, senior economic research analyst at Realtor.com. "If mortgage rates fall, we could see financed buyers regain ground, but for now, cash remains a powerful competitive advantage."
Source: Realtor.com
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