The City Where People Pay Cash for Houses

Key Points

• The American city where home buyers are most likely to pay cash is Naples, Florida.
• This city also ranks high on many lists of best places to live.
• Take this quiz to see if you’re on track to retire. (sponsored)

Many Americans take out mortgages to pay for their homes. As of now, this mortgage rate is generally close to 7%, about double what it was three years ago. Rising mortgage rates generally reduce demand and put downward pressure on prices.
However, because the U.S. has extremely low housing inventory, prices continued to rise in many markets despite high rates. People with 3% mortgages hold onto their homes because of relatively low monthly payments, lowering the inventory of homes for sale.

Some people get around the mortgage rate problem. In August, about a third of all home sales were cash. Naples, Florida, the major American city where people were most likely to pay cash, had a rate of 60%.

This post was updated on December 11, 2025 to include a section on why cash buyers have the advantage in today’s market.

Where Buyers Use Cash

Why cash buyers are drawn to Florida.

Most of the markets where most people pay cash for homes are in Florida. Among the top five, Naples is followed by Northport (53%), Palm Bay (49%), and Cape Coral (48%). Myrtle Beach, South Carolina, (53%) was the only city in the top five that was not in Florida. The data come from Redfin.

At the far end of the list was San Jose, California, where cash buyers comprised 19% of the market. Notably, San Jose is the most expensive housing market in the United States, with a median price of a house of nearly $1.5 million.

Naples has one significant advantage over many other American cities. It ranks high or at the top of many “best places” to live lists. In a recent U.S. News & World Report list, it ranked number one. “Long known as a preferred retirement spot for the rich, powerful and cold-averse, the greater Naples area supplies pristine beaches, sprawling golf courses, and fine dining and shopping,” the magazine reported.

It is open to debate whether income is related to cash buyers. According to the Census Bureau, Naples residents have a median household income of just over $135,000, compared to the national average of about $80,000.

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Why Cash Buyers Have an Advantage in Today’s Market

Cash buyers hold a significant edge in today’s housing market. By foregoing traditional financing, they eliminate many of the risks, delays, and uncertainties that many of us face. Additionally, sellers often prefer cash offers for a variety of reasons:  they close faster, do not require lender approval, and never involve any of the red tape that comes with financing (and tends to cause delays).

Often, even if the offer is slightly lower than other bids, the seller will prefer the cash buyer. This helps cash buyers beat any potential competition, which can be crucial in a time of high mortgage rates, tight inventory, and competitive bidding. Buyers with the resources to pay cash upfront have the benefit of moving quickly with fewer conditions. Ultimately, this provides a powerful advantage, especially in markets where desirable homes sell within days.