Pacaso Homes Outperform Average Luxury Home Market Appreciation by Double in 10 Key Vacation Home Regions, RCLCO Finds

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Aug 20, 2024, 08:00 ET

Shares of Pacaso homes have appreciated nearly 10% annually since 2021, compared to 4.9% for the luxury residential market in key Pacaso regions
3 out of 4 people who resell their Pacaso homes are interested in co-owning another one down the line

SAN FRANCISCO, Aug. 20, 2024 /PRNewswire/ -- Pacaso, the leading tech-enabled marketplace for co-ownership of luxury vacation homes, announces that shares of its properties have significantly outperformed the broader luxury residential market in its key regions, according to a recent analysis by RCLCO, a trusted real estate consulting and economics firm. The study reveals that shares of Pacaso homes have achieved a Compound Annual Growth Rate (CAGR) of 9.7%, outperforming their respective markets by an average of 4.7%.

Source: RCLCO analysis of historical second home resale Compound Annual Growth Rate (CAGR) data from 2021 through August 2024. Please note, past performance is not a guarantee of future performance.

RCLCO's comprehensive analysis compared the historical resale performance of shares of Pacaso properties with the average price appreciation of the luxury residential market within the same municipalities across Pacaso's highest yielding resale markets. The top 10 markets analyzed, where Pacaso saw the greatest appreciation, include Napa-Sonoma, Malibu, Lake Tahoe, Vail, Charleston, Park City, San Diego, Newport Beach, Palm Springs, and Miami-Fort Lauderdale. RCLCO reviewed transaction data for cities and municipalities with Pacaso homes, specifically looking at properties valued at $1 million or more.

"Our first-of-its-kind co-ownership marketplace has set a new standard, with resale values reaching twice the average market rate," said Austin Allison, CEO and Co-Founder of Pacaso. "This exceptional performance highlights the considerable equity our owners have built with Pacaso, and the robust demand for our homes in prime locations."

RCLCO Principal Karl Pischke added, "Co-ownership is becoming increasingly popular among homebuyers, particularly given the environment of elevated interest rates seen in the past several years, and growing affordability challenges. The performance of Pacaso property shares highlights how the growing co-ownership trend is particularly relevant for luxury vacation home buyers."

Pacaso facilitates a seamless resale process offering owners flexibility and simplicity. Owners can sell their ownership interest at any time, with the option to set their desired price based on a comparative market analysis provided by a dedicated Pacaso resale expert. Pacaso taps into its existing pipeline of buyers and comprehensively markets the home on the Pacaso marketplace and third-party websites. With a growing demand for the unique co-ownership model, many Pacaso homes have an extensive waitlist of eager potential buyers, with more than 91% of Pacaso homes with substantial waitlists. Dedicated resale experts provide regular sales updates, ensure a swift closing process, streamlining the resale journey.

"Three out of four people who resell their Pacaso homes are interested in co-owning another one down the line," Allison noted.

RCLCO analyzed Pacaso's resale performance using data provided by Pacaso, including initial offering prices and subsequent resale prices, to calculate the Compound Annual Growth Rate (CAGR) for each property. RCLCO compared this with third-party real estate transactional data from Zillow and Redfin to determine the annual market appreciation for luxury residential properties in the same regions. Download the full report here.

For more information on Pacaso and its portfolio of luxury vacation homes, please visit www.pacaso.com.

About Pacaso

Co-founded by Austin Allison and Spencer Rascoff in 2020, Pacaso^®is a technology-enabled marketplace that modernizes real estate co-ownership to make buying, owning, and selling a vacation home possible and enjoyable for more people. Pacaso curates luxury listings with premium amenities and high-end contemporary interior design, offers integrated financing, and, after purchase, professionally manages the home and supports seamless resale. Pacaso offers DIY services for real estate co-owners.

About RCLCO Real Estate Consulting

Since 1967, RCLCO has been the "first call" for real estate developers, investors, the public sector, and non-real estate companies and organizations seeking strategic and tactical advice regarding property investment, planning, and development. Our team leverages quantitative analytics and a strategic planning framework to provide end-to-end business planning and implementation solutions at an entity, portfolio, or project level. With the insights and experience gained over 55 years and thousands of projects, RCLCO brings success to all product types across the United States and around the world. RCLCO has offices in Austin, Denver, Los Angeles, New York, Orlando, and Washington, DC and offers an array of consulting services across real estate economics and management consulting. Learn more at www.rclco.com.

SOURCE Pacaso