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Study: Pacaso co-owned homes outperform traditional luxury homes

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Pacaso
August 19, 2024
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At Pacaso, we focus on curating inviting homes where families can unwind and enjoy memorable experiences together. Part of owning a Pacaso is also having the ability to resell your home. We're often asked about the true value of homes within our co-ownership marketplace.To better understand the financial performance of Pacaso homes compared to traditional luxury properties, we engaged the experts at RCLCO, a trusted real estate consulting and economics firm. They analyzed the historical average appreciation rates of Pacaso homes across top markets and compared them with broader luxury residential trends. Here’s what they found.

 Pacaso marketplace resale: Key findings

  • Shares of Pacaso homes have an average annual appreciation of nearly 10%, compared to 4.9% for luxury residential properties.
  • Pacaso homes in the top 10 markets showcased remarkable returns, consistently surpassing market averages.
  • Pacaso homes have the highest appreciation in Napa, California, outperforming traditional luxury homes by 12.1%.

Pacaso homes historically yield a near 10% appreciation 

According to RCLCO’s findings, shares of Pacaso homes have achieved an average Compound Annual Growth Rate (CAGR) of 9.7% — that’s 4.7% higher than traditional luxury homes in these respective markets. This means Pacaso homes have, on average, appreciated more than twice as much as other luxury homes priced at over $1 million in their respective areas by more than double. Owning a Pacaso can offer a return on investment for both one’s quality of life and for potential resale gain
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.

Pacaso homes outperform market averages

From 2021 to 2024, Pacaso homes have outperformed market averages in several of these luxury markets. In Napa-Sonoma, CA, Pacaso shares appreciated by 12.4%, compared to the market's 0.4%. In Malibu, CA, Pacaso shares rose by 9.6%, while the market saw a 2.2% increase. Lake Tahoe, CA, experienced a 9.5% appreciation in Pacaso shares, versus the market's 3.2%. In Vail, CO, Pacaso shares grew by 6.7%, compared to the market's 1.2%. Finally, in Charleston, SC, Pacaso shares appreciated by 7.9%, while the market saw a 2.9% increase. Overall, Pacaso shares have consistently outperformed the broader luxury market.The top 10 markets analyzed are where Pacaso saw the highest historical resale appreciation to date. 

Pacaso owners want to be Pacaso owners again

Pacaso makes the resale process smooth and flexible, empowering owners to sell their share at any time with the help of a resale expert who provides a market analysis. We leverage our pipeline of interested buyers and market the home extensively, resulting in many Pacaso homes having a long waitlist of potential buyers. Due to the ease and value of ownership, many Pacaso owners prefer not to sell. However if they do, we know they often return. In fact, three out of four Pacaso owners who resell their homes express interest in co-owning another Pacaso property in the future. 

Methodology

To determine the average returns for Pacaso’s shares in each market, RCLCO used data provided by Pacaso, including the initial offering price, resale prices and sale dates for each share. RCLCO calculated the Compound Annual Growth Rate (CAGR) for each property and then averaged the CAGR for properties in a given market to find the average annual appreciation of Pacaso shares in that region. All data, including the locations shown on maps, were provided by Pacaso.For luxury real estate market returns, RCLCO relied on third-party data from Zillow (or Redfin for Park City). They analyzed transaction data for cities/municipalities where Pacaso homes are located, filtering for properties priced at $1 million or more. RCLCO calculated the average sale price for each year from 2021 to 2024 and then determined the CAGR using the 2021 and 2024 year-to-date prices.
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