Record home prices squeeze borrowers as investors, cash buyers hold edge

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Profit margins fell in 87.7% of the 130 metros with sufficient data, led by North Port, FL (down 24 percentage points to 45%), Cape Coral, FL (down 22 points to 56%) and Deltona, FL (down 22 points to 51%).

By contrast, typical margins improved modestly in several Midwest markets, including Canton, OH (up 5 percentage points to 54%), Akron, OH (up 3 points to 59%) and Chicago, IL (up 2 points to 47%).

Institutional buyers, cash and tenure reshaped local markets

Institutional investors bought 6.6% of all US homes for the second straight year, with concentrations near or above 9% in Tennessee and Texas (9.2%), Missouri (9.1%) and Indiana (9%).

At the metro level, investor activity was highest in Memphis, TN (14.8% of sales), Huntsville, AL (11.9%), Fayetteville, NC (11.4%), Birmingham, AL (11.2%) and Dallas, TX (11.1%).

All‑cash purchases remained a defining feature in many markets. Nationally, 39.1% of 2025 sales were cash – the highest share since 2013 – with Naples, FL (61.9%), Montgomery, AL (59.9%) and Hilo, HI (58.8%) among the most cash‑heavy metros.

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