The real estate market in South Florida remains one of the hottest and most competitive in the United States, with a notable trend drawing attention: the significant increase in homes being purchased in cash rather than through traditional financing. While in other parts of the country the volume of cash sales has declined, cities like Miami, Fort Lauderdale, and West Palm Beach lead the national ranking of transactions without financing. The question is: what’s driving this preference for cash payments in the region?
Florida leads the national ranking of all-cash purchases in 2024
According to the latest data released by Redfin, the metropolitan areas of South Florida lead the country in the number of real estate transactions completed in cash. West Palm Beach tops the list for so-called “All-Cash Buyers,” with 49.6% of sales carried out without financing in 2024. Fort Lauderdale follows with 38.9%, and Miami with 38.1%.
Why are so many buyers paying in cash in South Florida?
- Strong presence of investors: Many investors remain active in the South Florida market, purchasing properties with a focus on generating rental income and long-term appreciation. These investors tend to prefer cash payments to speed up transactions, avoid high financing interest rates, and gain greater bargaining power in negotiations. In recent years, branded residences, such as Mercedes-Benz Places and Pagani Residences, have also gained popularity among all-cash buyers. These properties — developed in partnership with globally recognized luxury brands — offer not only a strong lifestyle appeal but also the potential for premium appreciation over time. For investors, the association with a high-end brand adds value, credibility, and differentiation in the market, especially in competitive locations like Miami, where demand for exclusivity and quality continues to grow.
- International buyers seek asset protection: Foreign buyers, especially from Latin America and Canada, see South Florida as a safe way to diversify and protect their assets, transferring resources that are often sitting idle in their home countries, exposed to currency fluctuations and various political and economic risks. Rather than keeping these funds in unstable investments, they choose to allocate them into real estate in the United States, buying in cash within a strong and stable economy. In 2024, Argentinians and Colombians accounted for 32% of international transactions in the region; Colombians led purchases in Broward County, while Argentinians topped the list in Miami-Dade, and Canadians stood out in Palm Beach. This movement is not just about protection, but also about asset appreciation and income generation in one of the most solid real estate markets in the world.
- Migration from expensive states fuels cash purchases: Many buyers are relocating from states like California, New York, and Massachusetts, where property prices are significantly higher. After selling their properties in those high-value markets, they arrive in Florida with sufficient capital to make all-cash offers more easily, eliminating the need for financing.
- Purchase of luxury and vacation homes: A significant portion of cash purchases is related to the acquisition of second homes, vacation properties, or investment-focused real estate. High-end buyers prefer to pay in cash to avoid bureaucracy, speed up the process, and secure properties in highly sought-after areas.
Investment opportunity
Despite possible shifts in buyer profiles, the outlook for 2025 suggests that South Florida will remain an attractive hub for investors and high-net-worth buyers. The current moment is seen by many experts as a strong window for acquisition, with high inventory levels and room for negotiation.
If you’re thinking of buying or selling a property in Florida, AMG International Realty offers complete and personalized assistance to help you find the best opportunities in the region’s real estate market. Contact us today and chat with me on WhatsApp: +1 305 684 0455 (Heloisa Arazi).