Over 1 in 3 U.S. homes are now bought with cash

The trend shows a general increase in cash purchases since 2020 with 34.5% of home purchases made with cash in February 2024.


All-cash home purchases are increasing, according to new data from Redfin.

Why it matters: Wealthy individuals can navigate this expensive market more easily than typical buyers who need a loan.

What they're saying: Those thriving in this economy view homes as savings accounts, according to Redfin chief economist Daryl Fairweather. It's a relatively safe place to store cash, and you can always borrow against the home if you need to access the money.

Follow the money: Some of these all-cash purchases are made by investors, but not all. The South, for example, is a popular migration destination, Fairweather says.

People from high-cost cities like Boston can sell their expensive homes and use the profits to buy houses in cities like Atlanta with all cash.
All-cash offers are attractive to sellers, and there's the financial advantage of not taking on interest in this environment, Fairweather notes.
Mortgaged home sales have declined year over year, according to the report. Lack of affordability has sidelined many potential first-time buyers.

"You have to be a high-income earner or dual-income household to buy in this market," says Jeff Clay, a North Carolina agent and first-time buyer specialist, to Axios.