Survey finds affordability and financing are driving more buyers into the second-home market
In today’s economy, traditional ownership is increasingly inaccessible and misaligned with the real estate landscape. Ongoing issues with low inventory, high home prices, elevated mortgage rates, and down payment obstacles make whole-home ownership more challenging, especially for younger buyers. Against that backdrop, new survey data from Pacaso clarifies which levers actually move would-be vacation-home buyers off the sidelines.
Affordability and financing are the decisive drivers. About two‑thirds say they’d be more likely to purchase if they didn’t have to cover 100% of the cost. Flexible financing also increases the likelihood of making a purchase. While inventory remains tight, affordability and financing emerge as the most immediate unlocks for would‑be buyers. The most common obstacles remain upfront costs, ongoing maintenance, and financing hurdles.
At the same time, remote work has untethered many from a single location, allowing buyers to relocate anywhere there’s internet access and making it easier to split time across markets. These dynamics, paired with today’s higher carrying costs, make professionally managed co-ownership a practical alternative for homebuyers, because it offloads maintenance and right-sizes the buy-in.
Fractional home ownership and affordability collide
Fractional home ownership provides an opportunity for more buyers to enter the market. They split the purchasing and carrying costs, repairs, maintenance, and taxes. Vacation home buyers pay only for the share they own, and because the buy-in is tied to the share, entry costs are lower than whole-home ownership.
Consider a $4 million home: a fractional purchase price tied to one-eighth up to one-half ownership makes entry feasible for households that might otherwise remain on the sidelines, while improving utilization of high-end homes that often sit vacant and underused.
Traditional financing isn’t keeping up
Today’s buyers require loan products with lower down payments and upfront costs, as well as flexible rates and terms, which conflict with traditional mortgage products. The typical 30-year fixed-rate loan contracts are historically for married couples and singles.
Another obstacle is that lenders may not be able to sell fractional ownership loans on the secondary mortgage market. In a 2023 Consumer Finance Protection Bureau (CFPB) study, originators sold over 82 percent of home purchase loans within the first year. Originators also sold over 75 percent of refinance loans in that same year. If lenders can’t easily sell fractional home ownership loans, it disrupts and slows down regular business.
How Pacaso is taking the lead
While some buyers have tried DIY co‑ownership with friends or family, those arrangements can create exposure if payments are missed or schedules aren’t clearly defined. Over the past few years, the category has begun to formalize, with Pacaso helping to establish a structured market for luxury vacation home co‑ownership.
Pacaso offers shared ownership homes in the luxury real estate market, enabling buyers to increase their purchasing power by acquiring shares ranging from 12.5% to 50% in high-end properties instead of purchasing the entire home.
Pacaso has pioneered a professionally managed co‑ownership approach, with ownership shares from one‑eighth to one‑half, paired with turnkey design, tech‑enabled scheduling, and full‑service maintenance and resale support. The model simplifies co‑ownership and reduces ongoing friction for second‑home buyers. As an additional key to their whole system, Pacaso offers integrated co-ownership financing, allowing buyers access to market-rate financing.
According to Pacaso CEO, Austin Allison, second-home owners typically only use their vacation properties for one or two months per year. Still, they’re 100% responsible for the expenses, maintenance, and repairs. Vacation property homeowners also often worry about the high underutilization of their homes, as well as the costs of repairs and maintenance. Those problems disappear when Pacaso manages all of the hassle of owning a vacation home, and those same underutilized homes turn into productive assets, used year-round.
Its co-ownership model is structured through a single limited liability company (LLC), a format familiar to lenders, and includes safeguards like covering buyer defaults to reduce risk for both co-owners and financial institutions.
Unlike traditional ownership, Pacaso owners don’t know one another, avoiding the interpersonal challenges that often arise when owning with friends and family. The company also handles property management, maintenance, and repairs, making ownership worry-free. Owners can schedule their stays up to two years in advance through the Pacaso app, and even swap time at other Pacaso homes, offering greater flexibility and international vacation options.
Notably, Pacaso also provides financing up to 70%, a valuable benefit in today’s cautious lending environment.
How real estate agents and lenders may benefit
Agents and lenders can work together to identify clients who are priced out of traditional second‑home financing but would still be great candidates for fractional ownership. Net‑new demand is real: about two‑thirds of Pacaso’s survey respondents say they’d buy within five years if affordability weren’t a concern, clear headroom for solutions that right‑size costs and streamline financing.
Lenders and banks
Pacaso’s shared ownership homes offer distinct advantages for lenders by treating the property as an investment and closing it through a single LLC, a structure lenders are already familiar with. Financing is offered directly through Pacaso’s integrated solution, in partnership with banks, creating a seamless experience from application to closing. The standard 70% loan-to-value (LTV) means buyers have more skin in the game, while lending partners carry less risk.
Pacaso’s streamlined process simplifies underwriting and reduces perceived risk, with the company guaranteeing payment to its banking partners if a buyer defaults. The 30% down payment also removes the need for private mortgage insurance (PMI), further strengthening the financing profile.
Real estate agents
For real estate agents, fractional ownership opens up a fresh avenue to serve clients who want more home for their money or desire second-home access without the full financial burden of whole-home ownership. Agents can guide buyers through the pros and cons of the model, helping them understand how co-ownership can provide greater flexibility and access to luxury properties that may have been out of reach.
Pacaso also supports agents directly through referral and co-brokerage fees, making it a rewarding financial partnership. With co-ownership, agents can sell the same home time and time again, rather than waiting for that same home to re-emerge on the market many years down the line.
Pacaso provides opportunity for legacy and wealth-building
In addition to making luxury ownership more affordable, Pacaso is addressing some of the financial challenges many face in the modern economy through two wealth-building opportunities.
One is through the property ownership model. Pacaso homeowners build equity in their real estate asset, just as they would if they owned a whole home. Owners can resell in the future at any price and keep any appreciation. Pacaso offers streamlined resale services and can help guide sellers on current market values and comparables. Shareholders can also pass their shares to beneficiaries, building a legacy.
Additionally, Pacaso recently opened up a Regulation A+ financing round, which allows both accredited and everyday investors to purchase stock in a venture-backed company. Thousands have participated to date, raising more than $35 million, reflecting clear interest in Pacaso’s model and growth plans. For as little as $1,000.50, individuals can become shareholders and share in potential future upside through an IPO or acquisition. You don’t need to own a Pacaso home to invest. Interested investors can learn more on their website.
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Disclaimer
AN OFFERING STATEMENT REGARDING THIS OFFERING HAS BEEN FILED WITH THE SEC. THE SEC HAS QUALIFIED THAT OFFERING STATEMENT, WHICH ONLY MEANS THAT THE COMPANY MAY MAKE SALES OF THE SECURITIES DESCRIBED BY THE OFFERING STATEMENT. THE OFFERING CIRCULAR THAT IS PART OF THAT OFFERING STATEMENT IS AVAILABLE HERE.
Methodology
This article references a recent survey commissioned by Pacaso and conducted by Pollfish in July 2025. The survey was initially fielded to a broad sample of 500 U.S. adults, followed by an additional 250 responses collected from individuals earning $150,000 or more annually to strengthen representation of higher-income households. Results carry a ±3.6% (percentage points) margin of error at the 95% confidence level. The study was designed to measure public interest and sentiment around second-home ownership, affordability, co-ownership, and perceived barriers.
English (US) · 