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