In the second quarter of 2025, nearly 7 out of 10 homes in Manhattan were bought with cash. That’s the highest level seen in years. Only 31% of buyers used a mortgage. Compared to the same time last year, the share of cash deals went up by more than 20%. Experts say wealthy buyers are driving this trend because they don’t need to borrow money—and with interest rates still high, paying all cash makes the process faster and simpler.

Rich Buyers Are Focused on Luxury Homes

Most of the action is happening in the high-end part of the market. Sales of luxury homes—generally priced at $4.5 million and up—rose by 18% in just one quarter. At the same time, the number of these high-end homes available for sale dropped by more than 20%. That’s a sign that demand is strong. The average price for a luxury property also jumped to $6.52 million. In short, rich buyers are still spending, and they’re not being scared off by the economy.

The Rest of the Market Is Recovering Slowly

Even though luxury sales are strong, the rest of the Manhattan housing market is moving more slowly. Overall home sales went up by about 16% compared to last year, and the median sale price is now around $1.2 million—only a small increase. The total number of homes for sale rose slightly, but nothing dramatic. This shows that while the market is doing better than it was in 2023, most of the momentum is coming from the top, not the middle.

Why Wealthy Buyers Are Still Buying

So why are rich people still buying Manhattan real estate right now? A few reasons. First, they often aren’t affected by mortgage rates—they either pay cash or borrow under special terms. Second, many see Manhattan property as a long-term investment that holds its value. And third, some have benefited from stock gains or favorable tax policies, giving them extra money to spend. For this group, real estate is less about finding a place to live and more about building or protecting wealth.

What’s Next for the Market

The market is starting to split in two. On one side, wealthy cash buyers are moving ahead with confidence, buying up high-end homes with little competition. On the other side, regular buyers—who rely on loans and are more sensitive to interest rates—are holding back. This gap could grow even more if mortgage rates stay high or if the economy slows down. Experts say we may see a more divided market in the coming months, with luxury sales staying strong and the rest of the market stalling out.