Cash Still King: One in Three Homes Bought with Cash in 2025

Rhea-AI Summary

Realtor.com analysis (Oct 7, 2025) finds cash purchases accounted for 32.8% of U.S. home sales in H1 2025, above the pre-pandemic average of 28.6%. Cash buying is concentrated at market extremes: about two-thirds of homes under $100,000 and >40% of homes over $1M (over 50% above $2M) were all-cash. State and metro variation is large: Mississippi (49.6%), Montana (46.0%), Idaho (45.0%), Miami metro (43.0%), and San Antonio metro (39.6%) show especially high cash shares. Year-over-year shifts include West Virginia +5.3%, New Mexico +4.0%, Texas +2.8%, while Hawaii fell -4.0%.

Implication: cash buyers (equity-rich households, investors, second-home buyers) hold a competitive edge that could ease if mortgage rates decline.

Positive

• National cash share at 32.8% of sales in H1 2025
• Two-thirds of homes under $100,000 sold all-cash
• >40% of homes over $1M bought with cash; >50% above $2M
• San Antonio metro cash share rose 7.7% YoY

Negative

• Cash share remains above pre-pandemic 28.6%, signaling affordability strain for financed buyers
• Cash concentration at extremes may limit purchase opportunities for mortgage-dependent buyers
• High cash share in many states (e.g., Mississippi 49.6%) could pressure competition in affordable markets

Insights

Housing Market Strategist

All-cash purchases remain unusually high: 32.8% of U.S. sales in H1 2025, concentrated at market extremes.

Realtor.com data show cash buyers drive outcomes at both ends of the price spectrum, with roughly two-thirds of homes under $100,000 and more than 40% of homes over $1,000,000 purchased in cash; sales above $2,000,000 exceed 50%. This pattern implies liquidity and wealth concentration shape who wins bidding situations, while financed buyers cluster in mid-market segments.

Key dependencies and risks include changes in borrowing costs and the supply of listings. The analysis itself links a potential shift back toward financed buyers to falling mortgage rates, and notes geographic variation—states like Mississippi (49.6%) and metros like Miami (43.0%) show heavy cash prevalence. These factors create uneven affordability effects and vary by local credit access and investor activity.

Concrete items to watch over the next few quarters: mortgage rate movements (which the analysis ties to shifts in cash share), institutional buying in Texas metros (noted year-over-year gains), and cash-share trends in luxury and low-price segments through Q4 2025. Monitor changes in the national cash share from the H1 2025 baseline of 32.8% and state/metro pockets where the report documents large deviations.

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, Oct. 7, 2025 /PRNewswire/ -- 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."

Cash Share by State

State	2025 Cash Share (H1)	Year-over-year
Alabama	38.7 %	-0.7 %
Alaska	34.2 %	-2.9 %
Arizona	32.9 %	-0.8 %
Arkansas	28.7 %	1.4 %
California	24.6 %	-0.5 %
Colorado	24.0 %	-1.4 %
Connecticut	29.3 %	-2.0 %
Delaware	29.4 %	-1.8 %
District of Columbia	23.4 %	-0.5 %
Florida	38.7 %	-0.5 %
Georgia	31.0 %	-0.3 %
Hawaii	44.9 %	-4.0 %
Idaho	45.0 %	-1.8 %
Illinois	26.3 %	-0.6 %
Indiana	41.1 %	-1.3 %
Iowa	30.4 %	-0.7 %
Kansas	36.7 %	-2.3 %
Kentucky	29.8 %	-2.3 %
Louisiana	32.7 %	0.5 %
Maine	44.4 %	-2.5 %
Maryland	24.0 %	-2.4 %
Massachusetts	26.4 %	-1.1 %
Michigan	31.9 %	0.3 %
Minnesota	25.5 %	-0.5 %
Mississippi	49.6 %	-0.8 %
Missouri	43.3 %	-1.7 %
Montana	46.0 %	-0.7 %
Nebraska	30.8 %	-0.4 %
Nevada	29.3 %	-1.1 %
New Hampshire	29.0 %	-3.7 %
New Jersey	27.6 %	-2.2 %
New Mexico	48.8 %	4.0 %
New York	40.9 %	2.0 %
North Carolina	32.9 %	-1.9 %
North Dakota	37.7 %	-3.6 %
Ohio	29.6 %	-1.0 %
Oklahoma	31.8 %	-2.0 %
Oregon	25.0 %	-1.3 %
Pennsylvania	28.4 %	-1.5 %
Rhode Island	23.6 %	-1.5 %
South Carolina	33.1 %	-2.8 %
South Dakota	*	*
Tennessee	34.4 %	-1.7 %
Texas	39.6 %	2.8 %
Utah	35.6 %	-0.7 %
Vermont	*	*
Virginia	28.0 %	0.0 %
Washington	21.1 %	-3.1 %
West Virginia	32.2 %	5.3 %
Wisconsin	25.2 %	-2.2 %
Wyoming	41.4 %	-3.5 %

*Data omitted due to quality concerns

Cash Share by Metro

Metro Name	Cash Share of Sales (2025 H1)	Year-over-year
Atlanta-Sandy Springs-Roswell, GA	29.0 %	-0.7 %
Austin-Round Rock-San Marcos, TX	33.6 %	0.7 %
Baltimore-Columbia-Towson, MD	23.3 %	-2.0 %
Birmingham, AL	38.8 %	0.0 %
Boston-Cambridge-Newton, MA-NH	26.1 %	-2.0 %
Buffalo-Cheektowaga, NY	31.0 %	-1.1 %
Charlotte-Concord-Gastonia, NC-SC	30.9 %	-2.3 %
Chicago-Naperville-Elgin, IL-IN	28.3 %	-0.9 %
Cincinnati, OH-KY-IN	26.2 %	-2.3 %
Cleveland, OH	33.2 %	-0.3 %
Columbus, OH	25.1 %	-0.6 %
Dallas-Fort Worth-Arlington, TX	35.9 %	3.5 %
Denver-Aurora-Centennial, CO	20.7 %	-0.3 %
Detroit-Warren-Dearborn, MI	33.8 %	-0.3 %
Grand Rapids-Wyoming-Kentwood, MI	26.2 %	-0.6 %
Hartford-West Hartford-East Hartford, CT	27.6 %	-1.0 %
Houston-Pasadena-The Woodlands, TX	38.8 %	2.5 %
Indianapolis-Carmel-Greenwood, IN	36.9 %	-0.2 %
Jacksonville, FL	31.5 %	-3.1 %
Kansas City, MO-KS	39.2 %	-2.7 %
Las Vegas-Henderson-North Las Vegas, NV	28.6 %	-1.3 %
Los Angeles-Long Beach-Anaheim, CA	26.5 %	-0.5 %
Louisville/Jefferson County, KY-IN	26.9 %	-4.0 %
Memphis, TN-MS-AR	34.2 %	-0.9 %
Miami-Fort Lauderdale-West Palm Beach, FL	43.0 %	-1.5 %
Milwaukee-Waukesha, WI	24.8 %	-2.9 %
Minneapolis-St. Paul-Bloomington, MN-WI	24.0 %	-1.5 %
Nashville-Davidson--Murfreesboro--Franklin, TN	31.6 %	-2.1 %
New York-Newark-Jersey City, NY-NJ	37.2 %	-0.3 %
Oklahoma City, OK	28.5 %	-2.4 %
Orlando-Kissimmee-Sanford, FL	31.3 %	-0.9 %
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD	27.6 %	-1.5 %
Phoenix-Mesa-Chandler, AZ	29.2 %	-0.8 %
Pittsburgh, PA	24.8 %	-2.5 %
Portland-Vancouver-Hillsboro, OR-WA	21.7 %	-2.2 %
Providence-Warwick, RI-MA	22.6 %	-1.1 %
Raleigh-Cary, NC	28.3 %	-2.5 %
Richmond, VA	31.0 %	0.4 %
Riverside-San Bernardino-Ontario, CA	25.5 %	-0.5 %
Sacramento-Roseville-Folsom, CA	22.4 %	-1.5 %
San Antonio-New Braunfels, TX	39.6 %	7.7 %
San Diego-Chula Vista-Carlsbad, CA	23.6 %	0.1 %
San Francisco-Oakland-Fremont, CA	23.6 %	0.1 %
San Jose-Sunnyvale-Santa Clara, CA	20.6 %	1.0 %
Seattle-Tacoma-Bellevue, WA	17.9 %	-2.1 %
St. Louis, MO-IL	38.1 %	-1.8 %
Tampa-St. Petersburg-Clearwater, FL	35.0 %	0.8 %
Tucson, AZ	34.6 %	0.9 %
Virginia Beach-Chesapeake-Norfolk, VA-NC	21.2 %	-1.1 %
Washington-Arlington-Alexandria, DC-VA-MD-WV	21.5 %	-1.5 %

Methodology:
This analysis uses deed records dating back to 2001 to measure the prevalence of all-cash home purchases. A sale is classified as "all-cash" when the recorded transaction shows no evidence of a mortgage lien at closing. Shares are calculated as the number of all-cash transactions divided by the total number of home sales in a given geography and time period. Results are reported at the national, state, and metro levels, and are aggregated by calendar year or half-year for trend comparability. Historical benchmarks (2001–present) allow for analysis of long-term patterns, including the post-recession peak, pre-pandemic baseline, and recent shifts in cash activity.

About Realtor.com^®
Realtor.com^® pioneered online real estate and has been at the forefront for over 25 years, connecting buyers, sellers, and renters with trusted insights, professional guidance and powerful tools to help them find their perfect home. Recognized as the No. 1 site trusted by real estate professionals, Realtor.com^® is a valued partner, delivering consumer connections and a robust suite of marketing tools to support business growth. Realtor.com^® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.

Media contact: Mallory Micetich press@realtor.com

View original content:https://www.prnewswire.com/news-releases/cash-still-king-one-in-three-homes-bought-with-cash-in-2025-302576026.html

SOURCE Realtor.com

FAQ

What share of U.S. home sales were all-cash in H1 2025 for NWSA investors to note?

32.8% of U.S. home sales were all-cash in H1 2025.

Which U.S. states had the highest all-cash home purchase shares in H1 2025?

Top states include Mississippi 49.6%, Montana 46.0%, Idaho 45.0%, Hawaii 44.9%, and Maine 44.4%.

How concentrated are cash buyers by price tier according to the H1 2025 data?

Cash dominates extremes: about two-thirds under $100,000 and >40% over $1M; >50% above $2M.

Which metros showed the highest cash share of sales in H1 2025?

High-cash metros include Miami 43.0%, San Antonio 39.6%, Kansas City, Kan. 39.2%, and Houston 38.8%.

Did cash share increase or decrease year-over-year in 2025 H1?

Some states rose (West Virginia +5.3%, New Mexico +4.0%, Texas +2.8%); others fell (Hawaii -4.0%, New Hampshire -3.7%).

How might changes in mortgage rates affect cash share and competition?

If mortgage rates fall, financed buyers could return and reduce the all-cash share, lessening cash buyers' competitive edge.