An overwhelming majority of homes sold in New York City during the first half of this year were purchased with all-cash offers, a new report reveals. The data shows that more than 60% of all residential sales were made without a mortgage, a figure that starkly contrasts with national trends and raises concerns about housing affordability and market inequality.
The analysis, which reviewed 17,924 home sales across four boroughs, highlights a growing challenge for traditional homebuyers who rely on financing. In some neighborhoods, nearly every single transaction was an all-cash deal, effectively sidelining buyers who need a mortgage to compete.
Key Takeaways
- Over 60% of NYC home sales in the first half of 2025 were all-cash, compared to a national average of about 25%.
- Queens recorded the highest volume of cash sales, while parts of the Bronx saw over 98% of deals done without financing.
- The trend is linked to a rise in property flipping and an increase in foreclosure filings in low- and middle-income neighborhoods.
- Advocates are pushing for legislative solutions, including an ownership disclosure law and a "flip tax" to curb speculative buying.
A Market Tilted Towards Cash
A comprehensive report from the nonprofit Center for NYC Neighborhoods details a housing market increasingly inaccessible to the average New Yorker. The analysis of public property records from January 1 to June 30, 2025, found that all-cash buyers were involved in the majority of transactions for one- to four-family homes, condos, and co-ops in the Bronx, Brooklyn, Manhattan, and Queens.
This trend represents a near-total reversal of the national picture. Across the United States, roughly three-quarters of home sales involve a mortgage, with only about 25% being all-cash purchases. In New York City, those numbers are flipped, creating a uniquely challenging environment for first-time buyers and those without substantial liquid assets.
By the Numbers: NYC's Cash Market
- 17,924: Total home sales analyzed in the first half of 2025.
- >60%: Percentage of those sales that were all-cash transactions.
- 4,132: Number of all-cash sales in Queens, the highest of any borough.
Experts suggest this reliance on cash creates a two-tiered system. "The report speaks to a deepening inequality in both who can buy homes in New York City and who can keep them," said Ariana Shirvani, a senior program manager at the organization that published the report.
The Geographic and Economic Divide
The prevalence of cash buyers varies dramatically across the city. While the overall rate is high, certain areas have become almost exclusive markets for those who can pay upfront.
In the East Bronx, covering neighborhoods like Throgs Neck and Pelham Bay, the numbers are particularly stark. Of 325 home sales recorded in City Council District 13 during the six-month period, only five involved a mortgage. The remaining 98.5% were paid for in cash.
The luxury market in Manhattan shows a similar pattern. For homes sold for more than $3 million, nine out of every ten buyers paid for the property entirely in cash. Meanwhile, Queens had the highest total number of all-cash sales, with 4,132 out of approximately 6,000 purchases made without financing.
The Seller's Advantage
Sellers often prefer cash offers because they eliminate uncertainty. A deal involving a mortgage can be delayed or fall through due to lender requirements, appraisals, or a buyer's inability to secure the loan.
"Cash is king because there are no strings attached. It guarantees certainty for sellers and in this turbulent economy that is 2025."
This preference gives a significant advantage to wealthy individuals and corporate investors, who can close transactions more quickly. While beneficial for homeowners looking for a fast sale, it often puts families hoping to buy and live in a home at a distinct disadvantage.
Speculation and Financial Distress
The report connects the rise in cash sales to an increase in property flipping, especially in the same East Bronx and Southeast Queens neighborhoods. Flipping, the practice of buying a property to resell it quickly for a profit, is often dominated by investors with deep pockets.
Simultaneously, many homeowners are facing financial hardship. Christie Peale, Executive Director of the Center for NYC Neighborhoods, noted that stagnant wages and inflation may be pushing more distressed owners to sell to cash buyers for a quick resolution.
A Troubling Echo of the Past
The report also found that new foreclosure filings nearly doubled in the first half of 2025 compared to the last six months of the previous year. These filings are concentrated in Central Brooklyn and Southeast Queens, the same low- and middle-income communities of color that were hit hardest during the 2008 mortgage crisis.
This situation creates a cycle where financially vulnerable residents sell their homes, often to investors, and then re-enter an increasingly competitive rental market, further driving up housing costs for everyone.
Calls for Legislative Action
In response to these trends, homeowner advocates are urging state lawmakers to intervene. They argue that without new regulations, corporate and speculative buyers will continue to reshape neighborhoods at the expense of long-term residents.
Several proposals are on the table:
- Ownership Disclosure: A law that would require the individuals behind anonymous shell companies (LLCs) to be identified.
- Flip Tax: A proposed bill would impose a significant surcharge on profits made from selling a home within two years of purchase. The tax could be as high as 65% of the profit.
- Corporate Buyer Restrictions: A new state law passed in May already aims to slow down flipping by forcing owners to wait three months before they can sell a property to a corporate entity.
Advocates believe these measures are critical to leveling the playing field and preserving homeownership opportunities for New York City families.
