BiggerPockets Daily Cash Purchases Now Make Up 28% of the Market
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Nov 3, 2025 The housing market is feeling the impact of cash buyers, now accounting for nearly 29% of all purchases. This trend is driven by unique market conditions and rates that favor cash offers. Additionally, the median down payment has soared to a record $70,000, reshaping affordability in the market. Regional differences in down payments reveal stark contrasts, especially between the Bay Area and other cities. With these changes, understanding the landscape is crucial for buyers and investors alike.
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Cash Purchases Remain Elevated Nationwide
- Nearly 29% of US homebuyers paid in cash in August, a level elevated versus pre-pandemic norms.
- Cash purchases peaked near 35% two years ago when mortgage rates were highest, then eased as rates fell toward ~6.3%.
Buyer’s Market Reduces Need For Cash
- The market shifted into a buyer's market with sellers outnumbering buyers by over 500,000 this summer.
- That reduced the need for cash offers since bidding wars became less common and competition eased.
Regional Contrast: Florida Versus West Coast
- Florida saw particularly high cash activity: West Palm Beach nearly 43% and Miami 39% cash sales.
- By contrast, San Jose and Seattle had much lower cash shares due to sky-high prices there.