Cash Buyers Take Over South Florida as Out-of-State Equity Challeges the Market

Written by:

Rudi Davis

Date:

29 Oct 2025

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The South Florida real estate market is undergoing a notable transformation, with cash purchases increasingly driven by out-of-state buyers leveraging home equity from more expensive markets. This trend is altering local market dynamics and pricing, with significant consequences for Florida residents.

Arkadiy Abdurakhmanov, a real estate agent with United Realty Group who has over 20 years of experience in South Florida, says the surge in cash buyers is largely due to geographic price differences. “Most on cash buyers. It is from California, from New York, from Boston, from state where the property much more expensive, the Florida,” he explained.

This marks a departure from historical patterns, where local buyers accounted for a larger share of transactions. The influx of out-of-state buyers has accelerated in recent years, changing the competitive landscape for Florida-based buyers who typically depend on financing.

The difference in home values between states has led to what Abdurakhmanov calls a significant equity migration.

Although the power of equity arbitrage has lessened over time, it still gives out-of-state buyers a clear advantage. The ability to buy multiple properties in Florida with the proceeds from a single home sale in a high-cost market creates a buyer group with different financial resources than local purchasers.

The rise of cash buyers has led to a two-tiered market that puts local buyers at a disadvantage, especially those who need a mortgage. With current mortgage rates at 6-7%, financed buyers face more obstacles beyond just competing against cash offers. Abdurakhmanov points out that many local buyers are being priced out: “Florida doesn’t have so much salary that we don’t have so much business. We just have service. We don’t have manufacturers. We’re not with plants. We just have a service. And our salary is much, much low that we want it.”

South Florida’s service-based economy means local incomes have not kept up with the rise in real estate prices fueled by out-of-state cash buyers. The result is a market where housing prices are increasingly disconnected from local economic fundamentals.

The dominance of cash buyers has contributed to what Abdurakhmanov describes as an overpriced market. “My on my opinion, it is overpriced Florida, but because we don’t have so much, so much property on the market before, and so many people want to come, therefore it was disadvantage,” he explained.

This situation creates a cycle where limited inventory and high-equity buyers drive prices beyond what local incomes can support. Abdurakhmanov warns that if mortgage rates fall, demand from both local and out-of-state buyers could further push prices up: “If the mortgage going down, we again will be crazy and game price will be skyrocketed.”

The reliance on out-of-state cash buyers raises concerns about the long-term stability of the market and the health of the local economy. When a large portion of transactions are fueled by equity from other states rather than local economic activity, the market becomes more vulnerable to changes in those external markets.

Abdurakhmanov also notes broader economic issues, stating that “unfortunately, big unfortunately value of dollar fell, and therefore the people usually you buy insane property. What was 20 years ago, same point, but now, of course, much more expensive.”

With a high concentration of buyers from states like California, New York, and Massachusetts, South Florida’s market has become increasingly tied to ongoing migration from these areas. Any shift that reduces available equity for homeowners in those states could affect the pool of buyers and local pricing.

The growing dominance of cash buyers is changing the structure of South Florida’s real estate markets and raising critical questions about housing access for local residents and workers.