Cash Purchases Dominate New York City's Housing Market in 2025

In the first half of 2025, cash purchases accounted for over 60 percent of all real estate transactions in New York City, according to a report from the Center for NYC Neighborhoods. Specifically, 10,825 out of 17,924 recorded sales were cash deals, highlighting a significant trend in the city's housing market. Queens led the city in total cash transactions with 4,132 sales, while the Bronx exhibited the highest cash-buy ratio, with approximately 17 cash purchases for every mortgage deal.

Newsweek

The report, titled "NYC's Homeownership Hotspots II: Shifting Trends and New Realities," detailed the distribution of cash purchases across the boroughs. Following Queens, Brooklyn recorded 3,250 cash buys, Manhattan had 2,256, and the Bronx had 1,036. Notably, in Manhattan, nearly 90 percent of homes priced over $3 million were purchased with cash. The neighborhoods in Queens with the highest concentrations of cash buys included College Point, Whitestone, Bayside, Flushing, Bayside Hills, Bellerose, Hollis Hills, and Fresh Meadows.

Newsweek

The prevalence of cash transactions in New York City reflects a growing economic divide, making homeownership increasingly unattainable for many residents. Nationally, cash deals represented about 32.8 percent of home sales during the same period, indicating that New York City's figure is significantly higher. The Center for NYC Neighborhoods noted that the dominance of cash buyers provides them with leverage in negotiations, particularly in competitive segments of the market.

Newsweek

Joel Berner, a senior economist at Realtor.com, indicated that the surge in cash purchases is likely driven by wealthy individuals rather than first-time homebuyers. He emphasized that New York's luxury market attracts cash-rich buyers, who are often looking for high-end properties. This trend suggests that homeownership in NYC is becoming increasingly stratified, positioning it as a luxury accessible primarily to those with substantial financial resources.

Newsweek

The Center for NYC Neighborhoods stated that the current cash-buy trend underscores the competitive nature of New York City's housing market, where cash reigns supreme. They also highlighted that the rise in cash transactions could be linked to the high interest-rate environment, prompting buyers to avoid financing options due to elevated borrowing costs.

Newsweek

Critics argue that the dominance of cash transactions exacerbates economic inequality in New York City. The trend indicates a shift towards a housing market that favors affluent buyers, further marginalizing those who rely on financing to purchase homes. This stratification raises concerns about the long-term implications for the city's diverse population and its ability to maintain affordable housing options.

Newsweek

• “The dominance of liquid capital this period underscores how cash reigns supreme in New York City’s most competitive housing segments, offering buyers leverage not just in price, but in perceived reliability.” — Center for NYC Neighborhoods

Newsweek

• “New York has a strong luxury segment of the market, and we know from previous research that more expensive homes often get more cash offers from the types of buyers who are cash-rich and looking to buy expensive properties,” — Joel Berner, Senior Economist, Realtor.com

Newsweek