Pacaso, a luxury vacation home co-ownership platform, is making waves in the real estate market by introducing a new approach to shared ownership. Founded in 2020, the company initially listed multimillion-dollar homes for co-ownership, catering to wealthier buyers. However, in a strategic move to appeal to a wider audience, Pacaso has now launched thousands of listings with share prices starting as low as $200,000. This shift in pricing aims to address the current challenges of housing affordability, allowing more people to experience the luxury of owning a vacation home.
Unlike traditional timeshares in resorts, where consumers buy the time and not the property, Pacaso offers a unique opportunity for owners to benefit from the appreciation of the underlying home. According to Austin Allison, the co-founder and CEO of Pacaso, owners who have resold their shares have experienced about a 10% increase in value, surpassing what they initially paid for the property. This value appreciation, coupled with the flexibility of shared ownership, makes Pacaso an attractive option for buyers looking to invest in real estate.
Despite its success, Pacaso has faced backlash from certain communities, with some likening it to an “Airbnb on steroids.” In Sonoma, California, residents passed an ordinance banning Pacaso from operating in the city, citing concerns about the impact on the local housing market. In St. Helena, California, where timeshares are prohibited, Pacaso reached a settlement allowing its existing properties to remain while restricting future expansion. Austin Allison remains optimistic, stating that the company is working to educate policymakers about the benefits of their model in hopes of overcoming these challenges.
In response to the growing demand for shared ownership, Pacaso is introducing a new suite of services to help primary homebuyers access the home-sharing model. With approximately one-fifth of primary homebuyers last year purchasing with a friend or relative, according to Zillow, there is a clear trend towards shared ownership as a means of affording homes that would otherwise be out of reach. This shift highlights the broader appeal of co-ownership beyond the vacation home market.
Pacaso’s innovative approach to luxury vacation home co-ownership is reshaping the real estate landscape by making upscale properties more accessible to a wider audience. Despite facing challenges from certain communities, the company remains committed to expanding its reach and educating policymakers about the benefits of shared ownership. As more buyers seek alternative ways to invest in real estate, Pacaso’s model offers a compelling solution for those looking to own a slice of luxury without the hefty price tag.