August 12, 2026
If you have been house hunting in New York City lately and felt like you were losing bidding wars to buyers who did not even need a mortgage, you were not imagining things. A new report is confirming what a lot of brokers, myself included, have been seeing on the ground for a while now. Cash is no longer just for the ultra wealthy in this city. It has become the norm.
According to a report from the nonprofit Center for NYC Neighborhoods, more than 60 percent of the 17,924 residential sales across the five boroughs in the first half of 2025 closed without a mortgage. That means roughly 10,825 homes were purchased entirely in cash in just six months (Gothamist).
To put that in perspective, cash buyers made up only about a quarter to a third of home purchases nationally over that same period, depending on which national data set you look at (Newsweek). New York City is playing an entirely different game than the rest of the country right now.
A few forces are converging at once. Mortgage rates have stayed elevated long enough that buyers who have the liquidity to skip financing altogether are choosing to do so, both to save on interest and to make their offers more competitive. In a market with limited inventory, an all-cash offer with no financing contingency is simply more attractive to a seller than an offer that depends on a lender approving the deal.
There is also a wealth story here. Ariana Shirvani of the Center for NYC Neighborhoods put it plainly, noting that all cash deals tend to favor buyers and investors with deep pockets while making it harder for everyone else to compete (La Voce di New York). Realtor.com senior economist Joel Berner echoed a similar point, saying the surge is largely being driven by wealthy buyers rather than first time purchasers, since expensive homes tend to attract more cash offers from buyers who have the liquidity to make them (Newsweek).
Manhattan is leading the way by a wide margin. PropertyShark found that 60 percent of Manhattan deals closed without financing in the first five months of 2025, and other analyses have shown that share climbing even higher in recent quarters (Brick Underground). The Bronx was the second most cash heavy borough at around 40 percent, though the story there looks different. Financed buyers in the Bronx tended to pay more than cash buyers, which suggests many of those mortgage holders are people planning to live in the home rather than investors (Brick Underground).
Queens had the highest total number of cash transactions of any borough, with more than 4,000 recorded in the first half of the year, and in some neighborhoods like Glen Oaks the cash share reached as high as 84 percent (Newsweek, PropertyShark).
Unfortunately, yes, and this is the part of the report that concerns me the most. New foreclosure filings nearly doubled in the first half of 2025 compared to the second half of 2024, with the heaviest concentration in Central Brooklyn and Southeast Queens, the same neighborhoods hit hardest during the 2008 crisis (Gothamist).
Center for NYC Neighborhoods Executive Director Christie Peale explained that many homeowners facing financial hardship end up selling and moving into the rental market, which adds even more pressure to an already tight rental system. So while cash sales at the top of the market often reflect wealth and investment strategy, cash sales elsewhere can also reflect distress, family members pooling resources, or investors picking up properties at lower price points.
If you are relying on a mortgage in this market, do not panic, but do plan ahead. Get fully underwritten and pre-approved before you start touring homes, not just pre-qualified. Work with your agent to write a clean offer with a strong earnest money deposit and as few contingencies as reasonably possible. And be realistic about timelines, since a seller comparing your offer to an all-cash one is going to weigh certainty and speed heavily.
If you are a seller, this data is good news. It means your buyer pool likely includes people who can close quickly and without financing risk, which can shorten your timeline to closing significantly.
Disclaimer: This content is intended for informational and educational purposes only and is not intended to be construed as legal, tax, financial, or insurance advice. Every property and tax situation is unique. Please consult a licensed attorney, CPA, or tax professional regarding your specific circumstances before making any decisions related to property improvements, tax assessments, or real estate transactions. Mohammed M. Rahman is a licensed real estate broker in New York. Contact: Mo@ClosedByMo.com.
