It takes more money than ever to buy a home in America right now. And nearly a third of home buyers navigating the high mortgage rates, rising home prices and low inventory are somehow buying their homes entirely in cash.
The share of home buyers paying all cash reached 33 percent through August this year, according to data from Redfin — one of the highest rates since the years following the Great Recession.
As cash purchases have become more common, the median age of home buyers has been ticking up and now stands at 56 years old, according to NAR’s data from July 2023 to this June. Even for first-time buyers, the median age has risen to 38 compared to 35 last year.
Many of the all-cash buyers are selling previously owned homes to fund their moves. But the rise of cash buys is making it even harder for first-time home buyers. Between July 2023 and June 2024, the share of first-time home buyers in the market was only 24 percent — a historic low.
“If it’s a multiple offer situation, it’s likely going to be hard to beat an all-cash offer,” said Jessica Lautz, deputy chief economist for the National Association of Realtors. Cash offers often move quicker and are seen as less risky for the sellers.
And the struggle to break into the housing market may not ease anytime soon — property experts surveyed by Reuters expect affordability to get worse for first-time buyers over the next year.
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