All-Cash Deals in NYC
Half of all buyers in NYC are cash buyers, these cash deals are concentrated in Manhattan, in the first 5 months of last year, 60 percent of deals were closed without financing. What is the strategy? Many of these buyers will refinance after they close, which is known as delayed financing. Cash buyers are usually investors looking for speed and negotiating power whereas mortgage-backed buyers are typically first time buyers, families or people searching for a long term residence rather than an investment property.
Manhattan vs. Other Four Boroughs
Cash deals seem to be driving prices up all across Manhattan especially in neighborhoods like the West Village, Hudson Yards, Chelsea & Tribeca. The West Village, for example, faced a median cash price of $2.27 million, $462,000 above the overall median price.
In the Bronx and Queens, these cash deals don’t have the same impact due to buyers seeking to become residents instead of investors therefore mortgage deals achieved higher prices. The median sales price for Bronx buyers seeking financing was $377,000 compared to $270,000 for cash.
The Visual Overview
New State Law Restricts Institutional Investors
In 2026, governor Kathy Hochul targeted institutional investors due to large investors holding a disproportionate share of the local housing market that decreases the opportunity for homeownership and increases prices. Kathy Hochul signed a new legislation in May that creates a 90-day waiting period for institutional investors who want to make an offer on one- or two-family homes, this removes the advantage of paying cash for a rapid close. The new law will apply to entities that own 10 plus single- and two- family homes, failure to abide by this law could result in $250,000 penalties.
