These States Lead the Nation in All-Cash Home Purchases — Here’s Why It Matters

While most homebuyers rely on mortgages to purchase a property, a significant share of Americans are choosing to pay cash and in some states, all-cash deals dominate the housing market.

A recent analysis by New American Funding, based on 2024 sales data from ATTOM, reveals the states where all-cash home purchases are most common. In these regions, buyers are skipping the financing process entirely, bringing serious advantages to the table in a competitive housing environment.

Why All-Cash Offers Matter

Buying a home with cash offers more than just bragging rights. It can speed up the closing process, eliminate the need for lender-required appraisals, and make offers more attractive in bidding wars. In today’s tight housing market, these benefits can be a game-changer.

The Top 10 States for All-Cash Home Sales

Based on the share of homes bought outright without a mortgage, here are the states leading the charge:

1. West Virginia – 41.1%
   Charleston and other cities in the Mountain State have seen nearly half of all home purchases made in cash. This is the highest rate in the country.
2. New York – 40.4%
   Despite its sky-high property values, New York, particularly in areas outside NYC, shows a surprisingly large number of cash buyers.
3. Delaware – 38.9%
   Wilmington and surrounding areas have a high proportion of cash transactions, likely fueled by retirees and out-of-state buyers.
4. Georgia – 37.5%
   With booming markets in Atlanta and beyond, Georgia sees strong investor activity and a healthy mix of cash buyers.
5. Alabama – 36.7%
   Lower home prices in cities like Huntsville and Birmingham may contribute to more people paying cash.
6. South Carolina – 35.2%
   Myrtle Beach and coastal towns remain a draw for retirees and second-home buyers using cash.
7. North Carolina – 34.3%
   Asheville and other scenic areas attract buyers looking to avoid mortgage hassles.
8. Louisiana – 34.1%
   New Orleans and surrounding cities are hotbeds for cash investment properties.
9. Maine – 33.4%
   Coastal towns and vacation destinations like Wells continue to see high levels of cash-funded real estate activity.
10. Ohio – 31.5%
    The Midwest state rounds out the top 10, with Akron and Cleveland seeing strong investor and downsizer interest.

National Trends

Across the U.S., more than 25% of home sales in 2024 were closed with cash, according to New American Funding’s data. Rising mortgage rates and fierce competition in certain markets have likely contributed to the appeal of bypassing financing altogether.

What’s Driving the Shift?

Several key factors are fueling the increase in all-cash purchases:

• Investor Activity: Investors are often better positioned to pay cash, especially in markets with rising rental demand.
• Retirees and Downsizers: Many older Americans are using equity from previously owned homes to buy new properties outright.
• Rising Interest Rates: Higher borrowing costs are pushing some well-capitalized buyers to skip financing to save on interest over time.
• Competitive Advantage: In markets with low housing inventory, all-cash buyers can close faster and are more attractive to sellers.

A Closer Look at the Market

According to a Redfin report, the national median sale price of homes hit $438,466 in April 2025 a 1.8% jump from March and up 1.4% year-over-year. Inventory also saw a seasonal boost, with over 1.9 million homes listed nationwide.

Despite these increases, the supply of affordable housing remains a concern. Many buyers, especially those relying on financing, face tough competition and cash buyers are often winning out.

As the housing market continues to evolve, expect all-cash offers to remain a powerful tool for those who can afford it. Whether driven by investment strategy, life changes, or simple convenience, cash remains king in many corners of the country.