All-Cash Home Sales Become Less Common

The share of homes purchased with cash has fallen over the years. According to recent data from real estate marketing platform Redfin, just under one-third—or 32.6%—of home purchases were made in cash in 2024, compared with 35.1% the year before and the lowest share since 2021. However, this is still an increase from before the pandemic, when the percentage of homes purchased with cash ranged from 25% to 30% on average.

The most all-cash sales were made in Florida, while more expensive coastal markets saw the lowest number of all-cash deals. For instance, in West Palm Beach, Fla., 49.6% of home purchases were made in cash. On the other hand, San Jose, Calif., recorded the smallest percentage of cash sales in 2024 at just 18.1%.

One reason the share of cash purchases fell was because investors—who make up a significant proportion of all-cash buyers—bought fewer homes than they did during the past few years.

“The rate of all-cash sales remains high because when housing is expensive—like it is now—wealthier Americans who can afford to pay cash are more likely than lower-income Americans to be buying homes,” said Redfin Senior Economist Sheharyar Bokhari. “We are unlikely to see the share of all-cash purchases fall much lower in 2025, unless mortgage rates drop enough to drive a significant increase in sales.” Read more