Published on October 17th, 2025 by Dana Anderson
- 29% of U.S. homebuyers are paying in cash, down essentially unchanged from last year and down from a peak of nearly 35% two years ago due to declining mortgage rates.
- The typical down payment is climbing, partly because in today’s expensive market, many buyers are affluent. It now sits at a record $70,000, and in percent terms, it’s 19%—up slightly from last year.
- All-cash payments are most common in Florida, and down payments are biggest in the Bay Area and Southern California.
Just under three in 10 (28.8%) U.S. homebuyers paid in all cash in August, down just incrementally from 29% a year earlier.
The data in this report is from a Redfin analysis of county records across 40 of the most populous U.S. metropolitan areas. August 2025 is the most recent month for which data is available. Down-payment data is limited to home purchases for which buyers took out a mortgage. An all-cash purchase is one in which there is no mortgage loan information on the deed.
The prevalence of all-cash payments peaked at nearly 35% in late 2023 and early 2024 because mortgage rates peaked in the high-7% range during that time. Buyers were inclined to pay in cash–if they could afford it–to avoid high monthly interest payments.
When mortgage rates came down from that peak, all-cash payments became less common, as lower rates mean lower interest payments. Another reason the share of buyers paying in cash has declined from its peak: this past summer was the strongest buyer’s market in over a decade, and a less competitive market means fewer buyers have to pay cash to beat out other bidders.
While the share of buyers paying cash has declined from its high point, it is essentially unchanged from last year. That’s largely because mortgage rates were sitting between 6.5% and 6.6% in August, mostly flat from a year before, keeping interest payments the same.
Fewer all-cash buyers can be good news for house hunters who don’t have the means to purchase a home without a loan, especially when paired with the fact that buyers in most markets hold negotiating power. Now that rates have declined a bit more to a weekly average of 6.27%, we may see all-cash purchases become even less common.
“First-time buyers have more opportunities than they did when the market was hot; they’re no longer competing against 10 other offers from people who are either paying in cash or shelling out a 50% down payment,” said Kathy Scott, a Redfin Premier agent in Phoenix. “House hunters are able to take a breath and think more clearly about where they want to live and what type of house they want. When they find it, they can make an offer they feel comfortable with, even if it’s below the asking price, and there’s a real chance the seller will accept. Home prices may dip a bit in the next year or so, but now is a great time to start building equity if you’re planning to stay in your new home for five to 10 years.”
Median Down Payment, in Dollars, Hits Record High
The typical U.S. homebuyer’s down payment was $70,000 in August, up 6.1% year over year to the highest dollar amount ever.
In percentage terms, the typical homebuyer’s down payment was equal to 18.6% of the purchase price, up from 17.8% a year earlier and the highest August level since 2013.
Down payments are rising in dollars largely because home prices are rising; when homes cost more, buyers need to put down more money. But higher prices aren’t the only reason: Home prices are up roughly 2% year over year, and down payments are up 6%. Down-payment growth is outpacing home-price growth mainly because when housing costs are high, like they are now, affluent people with the means to make bigger down payments are more likely to buy homes. It’s also likely that some wealthy Americans are making large down payments rather than paying cash as mortgage rates gradually decline.
There are a few reasons why down payments are rising in percent terms. One is similar to the reason mentioned above: Many of the people buying homes today are affluent, meaning they’re able to make larger down payments. They’re more likely to make big down payments when mortgage rates are fairly high, like they are now, to save money on interest payments down the line. Similarly, many of the people purchasing homes are move-up buyers who are able to roll over sizable equity from their previous home into a down payment. And with rates high and affordability tight, some lenders prefer bigger down payments to mitigate risks.
“With the housing market in a downturn, the people who are buying are those who are financially comfortable, secure in their jobs, and have money ready and waiting in the bank for a down payment,” said Andrew Vallejo, a Redfin Premier agent in Austin, TX. “For example, a few months ago I helped a buyer close on an $800,000 home with a 50% down payment. They were able to liquidate stocks to make a $400,000 down payment without thinking about it too much, and now their monthly payments are lower.”
But Redfin agents note the slow market is also having the opposite effect for some buyers, in terms of down payments. Some first-time buyers only have a small amount, maybe $10,000 or $15,000, for a down payment. That would have been unlikely to work several years ago, when the market was red hot. But now, some buyers are able to get lower-priced homes with lower down payments with little or no competition.
Metro-Level Highlights
The data below is from August 2025, the most recent month for which data is available. It covers 40 of the most populous U.S. metro areas.
All Cash
- All-cash purchases were most prevalent in West Palm Beach, where 43.4% of all home purchases were in cash. Next come Cleveland (42.1%) and Miami (39.2%).
- They were least prevalent in pricey West Coast metros: Oakland, CA (18.8%), San Jose, CA (19.1%) and Seattle (20.5%).
- The share of homes purchased in cash rose in roughly half the metros in this analysis, with the biggest increases in Baltimore, Riverside, CA and Providence, RI.
- The share declined most in Milwaukee, New York and Cincinnati.
Down Payments
- In dollars, down payments were biggest in California: The median was $408,000 in San Jose, the most of any metro in this analysis, $400,000 in San Francisco, and $300,000 in Anaheim. They were smallest in Virginia Beach, VA ($9,000), Pittsburgh ($23,000) and Cleveland ($27,000).
- In dollars, down payments rose year over year in roughly half the metros in this analysis, with the biggest increases in Providence, RI, Chicago and Washington, D.C.. The biggest declines were in Riverside, CA, Seattle and Denver (-9.5%).
- In percent terms, California also takes the cake in terms of biggest down payments. The typical buyer put 25% down in Anaheim, San Francisco and San Jose. Percentages were smallest in Virginia Beach (3%), Las Vegas (9.4%) and Tampa, FL (9.8%).
- In percent terms, down payments rose in 28 of the metros in this analysis. The biggest increases were in Providence, Orlando, FL, and Columbus, OH. The biggest declines were in Miami, Denver, and Warren, MI.
As a data journalist at Redfin, Dana Anderson writes about the numbers behind real estate trends. Redfin is a full-service real estate brokerage that uses modern technology to make clients smarter and faster. For more information about working with a Redfin real estate agent to buy or sell a home, visit our Why Redfin page.
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