Wealthy buyers increasingly turning to cash for luxury homes: report

More luxury homebuyers are paying with cash to acquire properties this year, a report from Coldwell Banker Real Estate revealed.

The company said in its “2025 Mid-Year Report” that more than half of over 200 surveyed Coldwell Banker luxury property specialists reported an uptick in wealthy buyers purchasing homes with cash.

 Roughly 34.1% said there has been a “slight increase” while 16.6% said there has been a “significant” rise in that method. 

To help boost themselves into homeownership, some buyers are turning to the banks of mom and dad to help with co-signings, down payments or entire properties. (iStock/Getty Images / iStock)

Mortgage rates have played into the increase in buyers paying cash to acquire homes, according to National Association of Realtors Chief Economist and Senior Vice President of Research Lawrence Yun. 

THESE STATES SEE THE MOST ALL-CASH HOME PURCHASES

“High mortgage rates are not appealing for borrowing, and, therefore, that induces the wealthy to pay all cash for real estate (after selling off a few of their assets),” he told FOX Business. 

Many have been turning to personal savings, stocks or funds they netted from selling another property as the “primary” means to make their luxury home purchases, according to the Coldwell Banker Real Estate report. 

Meanwhile, for 45.4% of specialists, cash purchases have stayed at their current levels so far this year, per the report.

On the flip side, just 3.9% of the Coldwell Banker luxury property specialists indicated their clients were moving away from buying homes through all-cash deals, Coldwell Banker Real Estate said.

The trend in cash purchases comes as roughly 68% of Coldwell Banker agents said rich homebuyers they work with are “maintaining – or increasing – current real estate exposure.” 

“We’ve had a lot of volatility along with macroeconomic and geopolitical uncertainty this year. There’s been a lot of transition and that’s actually turned a lot affluent buyers toward real estate,” Jenna Stauffer, a Florida-based broker and Global Real Estate Advisor for Sotheby’s Internal Realty, told FOX Business.

A For Sale sign is displayed in front of a house in Washington, DC, on March 14, 2022. (STEFANI REYNOLDS/AFP via Getty Images / Getty Images)

“Real estate proves itself as an anti-fragile asset,” she continued. “Unlike many investments that struggle under uncertainty, real estate tends to strengthen over time and remains one of the best long-term hedges against inflation. That’s why so many smart investors and high net worth buyers are parking their money in property this year. They’re using it to preserve and grow their wealth.” 

While wealthy buyers are sticking to their guns when it comes to what they want from a home, Coldwell Banker Real Estate also said…