In 2025, many wealthy people in the United States are buying expensive homes without taking loans. Instead of using mortgages, they are paying the full amount in cash. This trend is growing fast, especially in places like Florida and California.
A recent report from Coldwell Banker says that more than half of luxury real estate agents saw an increase in cash buyers this year. Only 3.9% said cash deals went down.
“Cash gives buyers more control and helps them close deals faster,” said Jason Waugh, President of Coldwell Banker Affiliates, in a CNBC interview. “If you have the money, why pay extra interest?”
Where It’s Happening
In Florida, rich buyers are picking up beachside homes in Miami and Palm Beach with cash. In California, homes in Los Angeles and Silicon Valley are also being bought without loans.
Real Estate Numbers
- Sales of single-family luxury homes went up by 1.7% compared to last year.
- Sales of attached luxury homes (like condos) dropped by 8.1%, but prices still rose by 8.4%.
- The number of homes for sale increased by 19.6% for single-family homes and 14.8% for attached homes.
- 68% of agents said their clients are keeping or growing their property investments.
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Why It Matters
Interest rates are still high, so loans are expensive. Rich buyers prefer to use cash to avoid paying extra. Real estate also feels safer than stocks or crypto during uncertain times.
Experts believe this trend will continue in 2025. Sellers like cash buyers because they close deals faster and don’t need bank approvals. For buyers, it’s a smart way to show financial strength and avoid debt.