All-Cash Home Buying Surges

AUSTIN – (By Dale King, Realty News Report) – The decades-old dictum, “Cash is king” underscores the fact that having access to ready money or liquid assets provides significant power, flexibility and security, all things essential to pay for immediate needs.

39% of Houston Home Buyers Paying All-Cash, Realtor.com says

A new analysis by Realtor.com says “Cash is still king,” particularly in the real estate world. The firm’s analysis determined that nearly one in three homes sold during the first half of 2025 was bought entirely with greenbacks.

The study highlights how cash buyers — from equity-rich households to investors and second-home purchasers — continue to exercise immense influence in today’s housing market.

Nationwide, 32.8% of home sales during 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 all-cash deals averaged just 28.6% of sales. Cash buys 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.”

As for traditional, mortgage-reliant buyers and households unable to pay the tab on a median-priced dwelling, she said, “this can add another hurdle in an already challenging affordability environment.”

Who’s buying with bucks?
All-cash purchases dominate at the extremes of the market, says Realtor.com.’s report. Two-thirds of homes priced under $100,000 and more than 40% of dwellings costing $1 million were acquired through cash sales. The share of cash deals s topped 50% for dwellings with price tags of $2 million.

The pattern cited in the report “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 are less influenced by borrowing costs and more likely to decide between cash and financing based on a broader range of financial issues.

Cash buyer tallies vary across U.S.

The prevailing share of cash buyers varies sharply across the country, driven by home prices, buyer demographics and local market dynamics.

Texas, in particular, saw some of the biggest all-cash buys and year-over-year gains, fueled by in-migration, institutional buyers and renewed investor activity.

Realtor.com says that in the Lone Star State, 39.6% of home purchases made during the first two quarters of 2025 involved cash. That’s not only a year-over-year increase of 2.8%, but it also outpaces the national percentage for homes purchased entirely with dollars.

Mississippi (49.6%), Montana (46.0%), Idaho (45.0%), Hawaii (44.9%), and Maine (44.4%) topped the list for all-cash share during the first two quarters of 2025, says the report.

In Mississippi, the proliferation of cash sales reflects the state’s lower home prices and more limited access to credit in some rural areas. Hawaii and Maine attract affluent second-home buyers, many of them older and equity endowed. Montana and Idaho have seen higher shares as out-of-state buyers compete for homes.

Texas metros high on cash sale list

The report notes that the largest metros in Texas also outpaced the U.S. in the share of overall sales fully managed with cash.

Totals recorded by Realtor.com were:

San Antonio, New Braunfels, 39.6% paid all cash, up 7.7% year-over-year.
Houston, Pasadena, The Woodlands, 38.8% paid all cash, up 2.5% y-o-y.
Dallas, Fort Worth, Arlington, 35.9% paid all cash, up 3.5% y-o-y.
Austin, Round Rock, San Marcos, 33.6% paid all cash, up .7% y-o-y.

Miami (39.2%), Birmingham, Ala. (38.8%) and St. Louis (38.1%) were also among metros that led the nation in all-cash buys for the first half of 2025. These markets all 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. Many homeowners in these areas have mortgage debt, suggesting more sensitivity to trends in mortgage rates.

Lower rates could shift share
While cash buyers currently hold a strong edge in the home buying arena, the balance could shift if mortgage rates decline. Lower borrowing costs would likely draw more financed buyers back to the market, particularly first-time purchasers who’ve been pushed to the curb 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 buyers who require financing regain ground.”

“But for now, cash remains a powerful competitive advantage.”

Mark Your Calendar

Central Houston will present the State of Downtown 2025 on Oct. 30 from Noon to 1:30 p.m. Some 1,000 business and community leaders will focus on progress in the heart of the city. NBC Sports soccer analyst Tim Howard, a Hall of Fame goalkeeper, will deliver remarks as Houston prepares to host the 2026 Fifa World Cup Games. The State of Downtown event will be held at the 713 Music Hall at the historic POST Houston, 411 Franklin St. For information: click here.