South Florida remains one of the most competitive real estate markets in the country, attracting a high number of cash buyers. A new study by real estate brokerage firm Redfin reveals that the metropolitan areas of West Palm Beach, Fort Lauderdale, and Miami rank among the top U.S. cities for all-cash home purchases in 2024.

Why Is South Florida a Magnet for Cash Buyers?

The trend of cash sales in South Florida is fueled by several key factors:

Strong Investor Presence – Investors continue to purchase homes for rental income and long-term appreciation.
International Buyers – Many overseas investors view South Florida as a stable place to park their money, particularly from Latin America and Canada.
Relocation from High-Cost States – Many buyers from the Northeast and California, where property values are significantly higher, can afford to purchase homes in cash after selling their previous properties.
Luxury and Vacation Homes – A significant portion of cash buyers are purchasing second homes or investment properties in desirable locations.

South Florida remains an attractive market due to its relative affordability compared to other major metro areas, strong rental demand, and year-round tourism. Buyers relocating from high-cost cities often leverage the sale of their previous homes to purchase properties outright. Additionally, many investors prefer all-cash transactions to increase their negotiating power and avoid mortgage interest rates.

Cities in South Florida with the Highest Cash Sales

Redfin’s report highlights that nearly half (49.6%) of home purchases in West Palm Beach were made with cash in 2024—the highest percentage among major U.S. metros analyzed. Other key areas include:

Fort Lauderdale – 38.9% of homes sold for cash
Miami – 38.1% of home purchases were all-cash transactions

While these numbers remain high, they have declined compared to 2023. For example, Fort Lauderdale saw a 2.5 percentage point decrease, and Miami experienced a 3.8 percentage point drop in cash sales year over year.

Why Cash Sales Are Declining Slightly

Despite South Florida leading in all-cash home purchases, 2024 saw the lowest total number of all-cash home sales in at least a decade. Several factors contribute to this shift:

Declining Investor Activity – Investors, who make up a large portion of cash buyers, purchased fewer homes in 2024 due to rising costs and economic uncertainty.
High Home Prices – As home prices rise, middle-class cash buyers find it harder to enter the market.
Property Insurance Costs – Florida’s ongoing insurance crisis has discouraged some buyers from purchasing homes outright, as premiums remain a significant expense.

Strategic Cash Buying Amid High Interest Rates

Many buyers are opting to pay in cash as a way to avoid high mortgage interest rates. Those who have significant capital available see this as a temporary measure, planning to refinance once rates decrease. Additionally, investors prefer all-cash transactions to increase their leverage in negotiations, particularly in competitive markets.

Luxury and International Buyers Driving the Market

High-net-worth individuals, snowbirds, and international buyers continue to be a driving force behind South Florida’s cash-heavy market. According to Redfin's report, the following groups are leading international purchases in key South Florida counties:

Broward County (Fort Lauderdale): Colombians make up 22% of international homebuyers.
Miami-Dade County: Argentinians account for 21% of international purchases.
Palm Beach County (West Palm Beach): Canadians represent 25% of foreign buyers.

Many luxury homebuyers and international investors prefer cash purchases to streamline transactions and avoid complications with financing. With South Florida’s warm climate, tax advantages, and desirable waterfront properties, the region remains a top choice for second-home buyers and real estate investors.

South Florida Real Estate Outlook for 2025

Looking ahead, experts predict that all-cash home purchases will remain strong, particularly among affluent buyers and investors. However, factors such as high insurance costs and potential interest rate adjustments could impact the market.

If you’re considering buying or selling in South Florida, The Mastropieri Group, Realtors can help you navigate this competitive market. Call us at (561) 544-7000 for expert guidance and to explore the best real estate opportunities in the area.