'All-cash home purchases' are exploding — here's why

In the United States, home ownership has long been viewed as a symbol of financial health and upward mobility. But in recent years, being able to afford the down payment needed to obtain a mortgage has become increasingly difficult —especially in pricy urban areas such as New York City, Seattle, San Franciso, Los Angeles and Boston.

According to Axios reporter Brianna Crane, "all-cash home purchases" are "on the rise" in the U.S. — an environment that clearly favors the rich when it comes to home ownership.

Drawing on recent data from Redfin, Crane explains, "Rich people can adapt to this pricey market more easily than typical buyers needing a loan…. Those winning in this economy treat homes like savings accounts, Redfin chief economist Daryl Fairweather says."

READ MORE: Economist Paul Krugman busts Ron DeSantis' newest 'intellectually bankrupt' battle

Crane adds, "It's a relatively safe place to store your cash, and you can always borrow against the home if need to tap into it."

According to Fairweather, sellers appreciate all-cash offers — while those wealthy enough to afford to home without a mortgage like to avoid having to pay interest.

Jeff Clay, a North Carolina-based real estate agent, told Axios, "You have to be a high-income earner/dual household" to purchase a home in his area.

"Mortgaged home sales are down year over year, per (Refin)," Crane reports. "Lack of affordability has pushed would-be first-time buyers to the sidelines."

READ MORE: 'Oxymoron': Nobel Prize economist dismantles 'neoliberal theorists' and 'unrestrained capitalism'

Read Axios' full report at this link.