WASHINGTON — Elevated mortgage rates since the pandemic have reshaped the U.S. housing market, pushing a growing share of buyers to bypass financing altogether and pay in cash, according to new data from Realtor.com and the National Association of Realtors.
For the past three years, more than a quarter of all U.S. home sales have been completed without a mortgage, NAR found. As of October, all-cash buyers accounted for 29% of transactions nationwide, up from 27% a year earlier and 19% five years ago.
According to the NAR, trend coincides with a sharp rise in borrowing costs. Mortgage rates climbed from pandemic-era lows in 2022, peaked near 8% in fall 2023 and have since settled into the low- to mid-6% range this year, according to NAR economists. Higher rates have made monthly payments less affordable, sidelining many first-time and lower-income buyers.
Years of Price Appreciation
At the same time, existing homeowners have benefited from years of price appreciation, giving them the equity to make cash offers on primary residences, second homes or investment properties. Realtor.com reported that nearly one-third of homes sold in the first half of 2025 were purchased entirely with cash.
“As mortgage rates increased, buyers with access to capital increasingly chose to close with cash,” Harrison Polsky, a real estate agent with Douglas Elliman in Dallas, told Realtors.com. Buyers often use cash or cash-equivalent strategies to speed closings and avoid financing hurdles, then revisit long-term loans later, he said.
Cash offers can eliminate financing contingencies, shorten closing timelines and give buyers added negotiating leverage with sellers, Realtor.com senior economic research analyst Hannah Jones wrote in an October report.
Cash Buyers Prevalent
Cash buyers are especially prevalent in vacation and investment markets. From January through October 2025, 57% of vacation-home buyers and 56% of investors paid all cash, NAR data show. By contrast, just 19% of primary residence purchases were cash deals.
First-time buyers remain heavily dependent on financing. Only 8% of first-time primary residence buyers paid cash in 2025, according to NAR’s “Profile of Home Buyers and Sellers.” Repeat buyers were far more likely to do so, with about one-third making cash offers this year.
Role of Demographics
The NAR added that demographics also play a role. Cash buyers tend to be older and wealthier, reflecting accumulated equity. The typical first-time cash buyer is 58 years old, compared with 38 for those using a mortgage. Among repeat buyers, the median age of cash purchasers is 68.
Geographically, all-cash sales vary widely, the NAR data show. In the first half of 2025, Miami had the highest share of cash transactions at 43%, followed by San Antonio at nearly 40%, according to Realtor.com. San Antonio also posted the largest year-over-year increase, driven by investor interest and an influx of higher-income buyers.
Outsize Influence
While cash buyers represent less than one-third of transactions, Jones said they wield outsized influence in a market strained by high prices and rates, making it harder for mortgage-dependent households to compete. If borrowing costs fall meaningfully, analysts say, more first-time buyers could return — potentially shifting the balance back toward financed purchases.
