Florida’s Cash Homebuying Boom: Who’s Buying and Why?

Cash home purchases have declined nationwide, but Florida remains a hotspot. A Redfin report reveals that in 2024, 32.6% of U.S. home sales were all-cash—the lowest since 2021. Investors are pulling back, largely due to stagnant rent prices, leading to fewer cash transactions.

However, Florida bucks this trend. West Palm Beach leads the nation with nearly 50% cash buyers, followed by Fort Lauderdale (40%) and Miami (38%). Chen Zhao, Head of Economics Research at Redfin, attributes this to Florida’s wealthy buyers and strong investor presence.

South Florida’s appeal lies in its high quality of life and investment potential. Many buyers, especially from the Northeast, are selling expensive properties and using their equity to purchase larger homes in the Sunshine State. International buyers also play a major role. Argentinians and Colombians account for 32% of South Florida’s international sales, with Brazilian firms eyeing development opportunities.

While cash sales are expected to remain strong, factors like inventory levels, construction costs, and insurance prices could influence the market. A shift in buyer demographics may also be on the horizon, with young professionals and families from cities like New York and San Francisco eyeing relocation.

Experts suggest that 2025 could be a prime time to buy, with favorable market conditions and ample inventory. Whether this cash-buying trend continues will depend on economic shifts, but for now, Florida remains a top destination for real estate investment.