Cash is on the rise as affluent Americans benefit from a surging stock market and the flexibility to relocate to more affordable parts of the country.
Nearly one-third (30%) of U.S. home purchases this year were paid for with all cash. That’s up from 25.3% during all of 2020 and represents the largest share since 2014, when 30.6% of homes were purchased with all cash. This is according to a Redfin analysis of county records published from January 2001 through April 2021—the most recent month for which national data was available.
Cash purchases are on the rise as Americans reap the benefits of a strong stock market. The S&P 500 Index has gained 36% in the past 12 months alone, as of July 14, 2021.
“I’ve never seen more cash in Boise’s housing market than I’ve seen in the past year,” said Shauna Pendleton, a Redfin real estate agent in Idaho. “I just sold a $700,000 home to a cash buyer last week. The entire $700,000 came from his E*Trade account.”
Additionally, remote work has allowed homeowners in expensive cities including San Francisco and New York to sell their homes and move to less expensive areas, where they can often afford to buy properties in cash.
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