- Current State of Cash Home Purchases
In 2024, only 32.6% of U.S. home purchases were made in all-cash—marking the lowest share since 2021, according to Redfin.
Overall, over one-third of transactions are still cash-based—particularly among higher-paying and equity-rich buyers.
- Regional and Sector Variations
New home sales continue to reflect even lower cash figures; for example, the NAHB reports only ~6.9% of new homes were sold in cash in Q2 2024—the lowest since late 2021.
Existing home purchases, however, remain much more cash-heavy—with about 28% of these dealings done via cash as of mid-2024.
- Underlying Reasons for the Decline
Investor activity has waned: As investors—a major source of cash buyers—reduce their market presence, the share of cash purchases has fallen.
High mortgage rates (~6–7%) are encouraging buyers to finance rather than tap into cash reserves, delaying further cash transaction declines unless rates drop.
- Who Is Buying with Cash?
Baby boomers dominate cash purchases: According to NAR, about 50% of older boomers and 40% of younger boomers bought homes outright in cash, whereas younger generations overwhelmingly relied on financing.
- Spotlight on Luxury & Specific Markets
In contrast to national trends, luxury markets like Miami are booming in cash purchases:
53.5% of properties priced between $1M–$5M were bought in cash.
That figure rises to nearly 59% for homes priced over $10M.
The ultra-high-end segment (e.g., condos over $2,000/sqft) saw 83% all-cash transactions in early 2025.
Summary Table
Category Trend / Insight
All-Cash Purchases (2024) 32.6%—a 3-year low—though still above pre-pandemic norms
New Homes (Q2 2024) Cash share is only ~6.9%—significantly less than existing homes
Cash Buyers’ Profile Primarily older, equity-rich buyers like baby boomers
Investor Cash Use Waning; fewer investors paying upfront in recent years
Luxury Markets Cash transactions remain dominant in high-end and ultra-luxury housing