# Almost 1/3 of homes are now purchased in cash: what that means for buyers By Chelsea Levinson, JD | 2022-09-29 > Almost a third of all home purchases in the US are now cash deals, with some buyers skipping financing to avoid the rising cost of mortgage rates. Financed buyers may still find opportunities, though, as home prices begin to cool and competition slows. ## Key Takeaways ## Key takeaways - Of US homes purchased in July 2022, nearly a third (31.4%) were bought in all-cash, up from 27.5% a year prior.  - Cash sales may be on the rise as buyers look to avoid the cost of climbing mortgage rates. - Even as cash sales increase, there may be more opportunities for buyers using financing, too.  - Some cities have significantly higher proportions of cash buyers than others. **Meta description:** Nearly 1 in 3 homes are purchased with cash. See the latest cash home buyers statistics for 2025, what it means for buyers, and how to compete with cash offers. Cash is king in today's housing market — and the numbers prove it. According to the [National Association of Realtors (NAR)](https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers), roughly 32% of all home purchases in 2025 were all-cash transactions, continuing a trend that has reshaped how Americans buy and sell real estate. For buyers relying on a mortgage, all cash offers in real estate represent one of the biggest competitive hurdles in recent memory. In this article, we break down the latest cash home buyers statistics, explore why cash purchases have surged, and — most importantly — share practical strategies for how to compete with cash buyers even if you need financing. Whether you're a first-time buyer or a seasoned homeowner looking to make your next move, here's what the data tells us heading into 2026. [Get your offer](#) ## Cash Home Buyers Statistics: The Latest Data The share of all-cash home purchases has grown significantly over the past several years. Here are the key numbers every buyer should know: > **Key Statistics at a Glance** > > - **32%** of U.S. home purchases in 2025 were all-cash — [NAR](https://www.nar.realtor/research-and-statistics) > - **26%** of purchases were all-cash in 2020, before the post-pandemic surge — [ATTOM Data Solutions](https://www.attomdata.com/news/market-trends/home-sales-prices/attom-year-end-2024-u-s-home-sales-report/) > - **38%** average cash-purchase share in Sun Belt states like Florida and Arizona — [Redfin](https://www.redfin.com/news/all-cash-home-purchases-2024/) > - **$300,000 and under:** the price tier where cash offers are most dominant — [ATTOM](https://www.attomdata.com/) > - **Investors** account for roughly 1 in 4 cash purchases nationwide — [CoreLogic](https://www.corelogic.com/intelligence/the-role-of-investor-activity/) > - **14 days:** typical closing time for a cash sale vs. 45+ days for financed purchases — [Freddie Mac](https://www.freddiemac.com/) ### Year-Over-Year Trend (2019–2025) Cash purchases hovered around 25% of all home sales between 2017 and 2019, according to [ATTOM Data Solutions](https://www.attomdata.com/). The pandemic era changed that. Low inventory, fierce competition, and a flood of investor capital pushed cash transactions to roughly 28% by 2021, then above 30% by 2023. Through 2025, cash purchases have stabilized near the 32% mark — a level not consistently seen since the aftermath of the 2008 foreclosure crisis, when investors scooped up distressed properties in bulk. Heading into 2026, most analysts expect cash offers in real estate to remain elevated as long as mortgage rates stay above historical norms. ### Cash Purchases by Region Not all markets are created equal. Cash buying is especially concentrated in Sun Belt states and popular retirement destinations. [Redfin data](https://www.redfin.com/news/all-cash-home-purchases-2024/) shows that metros in Florida, Arizona, and Nevada consistently report cash-purchase rates above 35%, driven in part by retirees selling equity-rich homes in higher-cost states and buying outright in lower-cost markets. By contrast, expensive coastal metros like San Francisco and Seattle tend to see lower cash-purchase shares — typically under 25% — because even wealthy buyers in those markets often use jumbo loans to preserve liquidity. ### Cash Buyers by Type: Investors vs. Individual Buyers It's not just Wall Street firms writing cash checks. While institutional and small-scale investors make up a meaningful portion of cash deals, [NAR's 2025 buyer profile](https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers) shows that individual repeat buyers — especially those over age 55 — account for the majority of cash purchases. Many of these buyers are leveraging home equity from a previous sale, allowing them to buy their next home without a mortgage. ## Why Are So Many Homes Being Bought With Cash? Several factors have converged to push cash transactions to historically high levels: - **High mortgage rates.** With rates hovering between 6% and 7% for much of 2024 and 2025, buyers who *can* pay cash have strong financial incentive to avoid interest costs entirely. - **Equity-rich homeowners.** Record home price appreciation since 2020 has left millions of homeowners sitting on substantial equity. When they sell, many can purchase their next home outright. Learn more about [determining your home's current value](https://www.opendoor.com/articles/how-to-determine-home-value). - **Investor activity.** Both institutional buyers and individual investors continue to target residential real estate, particularly single-family rentals in growing metros. - **iBuyer and cash-offer programs.** Companies like Opendoor give everyday buyers and sellers access to [cash-backed transactions](https://www.opendoor.com/articles/what-is-a-cash-offer-in-real-estate-and-why-consider-it) that were once reserved for the wealthiest purchasers. - **Foreign buyers.** International purchasers, who often face difficulty obtaining U.S. mortgages, frequently pay all cash — particularly in markets like Miami, Los Angeles, and New York. ## What Cash Offers Mean for Homebuyers If you're [planning to buy a house](https://www.opendoor.com/articles/how-much-does-it-cost-to-buy-a-house) with a mortgage, the surge in cash offers creates several real challenges. ### Increased Competition and Bidding Wars When a seller receives both a financed offer and a cash offer at the same price, the cash offer almost always wins. Cash deals carry less risk of falling through — there's no lender to deny the loan, no underwriting delays, and no appraisal requirement that could derail the sale. This dynamic puts mortgage-dependent buyers at a structural disadvantage, particularly in competitive markets with limited inventory. Understanding [how to determine what to offer on a house](https://www.opendoor.com/articles/how-to-determine-what-to-offer-on-a-house) becomes even more important in these situations. ### Pressure to Waive Contingencies To level the playing field, some financed buyers waive inspection or appraisal contingencies — protections designed to prevent overpaying or buying a property with hidden problems. While this can make an offer more attractive, it introduces risk. Before waiving contingencies, make sure you understand the difference between [contingent vs. pending](https://www.opendoor.com/articles/contingent-vs-pending) offers and what each status means for your position. ### Faster Timelines Favor Cash Buyers A cash sale can [close in as few as 14 days](https://www.opendoor.com/articles/how-long-does-closing-take), compared to the 30- to 50-day average for a mortgage-backed purchase. For sellers who need to move quickly — perhaps because they've already bought another home or are relocating for work — the speed of a cash offer is a powerful advantage. ## Benefits of a Cash Offer on a House Whether you're making a cash offer or receiving one as a seller, the benefits of a cash offer are significant: | | **Cash Offer** | **Financed Offer** | | **Closing speed** | 10–21 days | 30–50 days | | **Appraisal required?** | No (unless buyer requests one) | Yes — lender requirement | | **Risk of falling through** | Very low | ~5–10% of financed deals fall through | | **Negotiating leverage** | Strong — sellers prefer certainty | Weaker — contingencies add uncertainty | | **Potential price discount** | Buyers may negotiate 1–3% lower | Sellers less likely to discount | For sellers evaluating multiple offers, cash often wins even at a slightly lower price because the certainty and speed of closing outweigh a marginal price difference. If you're considering selling to a cash buyer, see how [selling to Opendoor compares to a traditional home sale](https://www.opendoor.com/articles/how-selling-to-opendoor-compares-to-a-traditional-home-sale). ## How to Compete With Cash Buyers When You Have a Mortgage The good news: you don't need a suitcase full of cash to win in today's market. Here are proven strategies to strengthen a financed offer. ### Get Fully Underwritten Pre-Approval A standard pre-approval letter is helpful but expected. A *fully underwritten* pre-approval means your lender has already verified income, assets, and credit — essentially completing the hard part of the approval process before you even make an offer. This signals to sellers that your financing is nearly as certain as cash. ### Waive Contingencies Strategically Consider waiving the [appraisal contingency](https://www.opendoor.com/articles/home-appraisal-tips-and-what-is-home-appraisal-based-on) if you have enough cash reserves to cover a potential gap between the appraised value and the purchase price. Be cautious about waiving inspections entirely — but offering to make the inspection "informational only" (meaning you won't negotiate repairs) can be a good middle ground. ### Increase Your Earnest Money Deposit A larger [earnest money deposit](https://www.opendoor.com/articles/earnest-money) shows the seller you're serious and financially committed. In competitive situations, offering 2–3% instead of the standard 1% can set your offer apart. ### Offer Flexibility on the Closing Timeline Ask the seller what closing date works best for them and match it. If they need extra time to move out, offer a [rent-back arrangement](https://www.opendoor.com/articles/real-estate-terms-you-should-know). Flexibility is free and often as valuable to sellers as a higher price. ### Write an Escalation Clause An escalation clause automatically increases your offer up to a set maximum if competing bids come in higher. This keeps you competitive without overpaying upfront. ### Use a Cash-Offer Program Perhaps the most direct way to compete with cash buyers is to become one. Programs like Opendoor allow you to [sell your current home for cash](https://www.opendoor.com/articles/sell-your-house-for-fast-cash-with-Opendoor) and buy your next one with the certainty of a cash-backed offer. This eliminates the chain of contingencies that weakens most financed offers. ## The Bottom Line With nearly one-third of homes selling for cash, buyers who rely on traditional financing face a steeper climb — but not an impossible one. Understanding the market dynamics, preparing strategically, and leveraging modern tools like cash-offer programs can help level the playing field. If you're planning to [sell your house fast](https://www.opendoor.com/articles/how-to-sell-your-house-fast-complete-guide) or buy your next home with confidence, explore how Opendoor's cash-backed solutions can give you a competitive edge. [Get your offer](#) ## Frequently Asked Questions ### What percentage of homes are bought with cash in 2025? Approximately 32% of U.S. home purchases in 2025 were all-cash transactions, according to data from the National Association of Realtors. This figure has remained near or above 30% since 2023. ### Are cash offers becoming more common? Yes. Cash purchases represented roughly 25% of home sales before 2020 and have climbed to about 32% as of 2025. Analysts expect this elevated level to persist as long as mortgage rates remain above historical averages. ### Do cash buyers pay less for homes? Sometimes. Because cash offers carry less risk and close faster, cash buyers occasionally negotiate a discount of 1–3% compared to financed offers. However, in competitive bidding situations, cash buyers may pay market price or above to win. ### How much faster does a cash sale close? A cash sale can [close in as few as 10–21 days](https://www.opendoor.com/articles/how-long-does-closing-take), compared to the typical 30–50 day timeline for a mortgage-backed purchase. The difference comes from eliminating lender underwriting, appraisal scheduling, and loan approval steps. ### Can I compete with a cash offer if I have a mortgage? Absolutely. Strategies like getting fully underwritten pre-approval, increasing your earnest money deposit, waiving certain contingencies strategically, and using a cash-offer program can make your financed offer nearly as competitive as an all-cash bid. ### Why do sellers prefer cash offers? Sellers prefer cash because these transactions are less likely to fall through, close faster, and don't require an appraisal that could complicate the deal. The certainty of a clean close is often more valuable than a marginally higher financed offer. ### What types of buyers are paying cash? The majority of cash buyers are individual repeat buyers over age 55 who use equity from a prior home sale. Investors — both institutional and small-scale — make up the second-largest group, accounting for roughly one in four cash transactions. ### Is it better to sell to a cash buyer? For many sellers, yes. Cash sales reduce the risk of delays, appraisal issues, and last-minute financing fall-throughs. If speed and certainty are priorities, selling to a cash buyer or an iBuyer like Opendoor can be a strong choice. Learn more about [how selling to Opendoor works](https://www.opendoor.com/articles/how-selling-to-opendoor-compares-to-a-traditional-home-sale). ### How do cash-offer programs work? Cash-offer programs allow buyers or sellers to transact with the speed and certainty of cash without personally having all funds available upfront. Companies like Opendoor purchase homes directly, giving sellers a [guaranteed cash offer](https://www.opendoor.com/articles/what-is-a-cash-offer-in-real-estate-and-why-consider-it) and streamlining the entire process. ### Where are cash purchases most common? Cash purchases are most prevalent in Sun Belt states. Florida, Arizona, and Nevada consistently report cash-purchase rates above 35%, driven by retirees, investors, and buyers relocating from higher-cost states with significant home equity. --- *Originally published at [https://www.opendoor.com/articles/briefs/one-third-homes-purchased-in-cash](https://www.opendoor.com/articles/briefs/one-third-homes-purchased-in-cash)*