“After dominating some markets during the pandemic, large investor activity has retreated, giving way to smaller investors who more often use financing.” She warns that investor presence remains elevated, with many non-investor buyers sidelined, and cash purchases still representing a sizable part of the market. In other words, hopeful millennial and Gen Z first-time homebuyers are up against deep-pocketed boomers and deep-pocketed Wall Street types.
At the metro level, Miami (43.0%), San Antonio (39.6%), and Kansas City (39.2%) top the charts, combining both investor activity and, in some cases, significant luxury or international demand. Meanwhile, cities like Seattle (17.9%) and San Jose (20.6%) see the lowest proportions of cash deals, reflecting higher reliance on traditional mortgages because of high local incomes and younger populations.
Jones proposes a pattern to the data: a U-shaped phenomenon of lower and upper-end transactions being particularly cash-sensitive.
