Pacaso 2022 Second Home Attitude Report: Buyers want to drive, and be near the water

On Presidents Day, many across the U.S. celebrate the nation’s past, present and future leaders with a restful day off. It's no secret that our commanders-in-chief, too, enjoy their own vacation time. From small towns in Texas to multi-generational coastal compounds, presidents across history have retreated to unique destinations for some R&R — many spending their time in a second home. In honor of the holiday, we analyzed seven second home destinations where U.S. presidents vacationed before, during, and after their time in office. Since history shows that So, which president chose the getaway spot with the greatest price appreciation? Hint: He was the 40th president of the United States. Key takeaways 1. Goleta, California (Ronald Reagan) Six presidential getaway destinations saw more than 17% growth in median second home price from last year — with the biggest growth being 20.55% in Santa Barbara County. The average luxury home value in this California county almost doubled from $776,767 to $1,247,645 over a five year period. Santa Barbara County is not only home to the popular cities of Santa Barbara and Montecito, but also the chosen getaway destination for Los Angeles city dwellers and, previously, the Reagans. The famed Rancho del Cielo where President Ronald Reagan retreated with his family, also known as the “Western White House” is located in Goleta, California. The presidential ranch is situated atop the Santa Ynez Mountain overlooking "The Good Land," a breathtaking 10-mile stretch of beautiful coastal and agricultural land. 2. Hyannis, Massachusetts (John F. Kennedy) Barnstable County, Massachusetts recorded the next largest growth in second home price year over year with 19.73% increase. Barnstable County is home to the popular coastal community of Cape Cod and its associated islands. The picturesque seaside town has a rich history with the Kennedy family, which began in 1928 when President John F. Kennedy’s parents purchased a vacation home in Hyannis Port. JFK, his brother Ted and his sister Eunice later purchased the neighboring homes to bring to life the Kennedy Compound, a  three-house, six-acre waterfront property along Nantucket Sound. "With serene beaches, quaint villages, colorful seafood shacks and lighthouses, the Cape embodies the best of New England charm and has long been a popular destination for second home owners and seasonal travelers," said Pacaso Co-Founder and CEO Austin Allison. 3. Rancho Mirage, California (Henry Ford) Coming in third is Riverside County, California, where the 38th President Gerald Ford retreated at one time. The county saw a 19.61% price appreciation in its luxury home prices from 2021 to 2022. Most interesting is chance in price appreciation prior, during and following the pandemic — second home prices were up 4.24% year over year in 2020 but skyrocketed to a 20.66% growth in 2021, showcasing the demand surge for second homes after the onset of the pandemic. Nestled in Rancho Mirage between Palm Springs and Palm Desert, Ford’s home sat on the 13th hole of the iconic Thunderbird Country Club. The popular desert city is home nearly 300 days of California sun and great golf, and has long been a popular getaway for Hollywood and influential celebrities alike including Frank Sinatra, Dean Martin, Bing Crosby, Lucille Ball, and of course, Gerald and Betty Ford. 4. Crawford, Texas (George W. Bush) Perhaps the smallest town on this list of presidential second homes is Crawford, Texas in McClennan County, and the home away from home of Laura and George W. Bush. While Crawford’s population is less than 1,000 people strong, the central Texas county saw a 18.98% increase in the value of luxury homes from 2021 to 2022, perhaps due to the charming county seat of Waco. Waco is approximately 35 miles east of the "Bush Ranch" and offers plenty for locals and visitors alike to do and explore, from Baylor University and Cameron Park to delicious barbecue, unique boutiques and more. The stars of popular home show "Fixer Upper" and owners of Magnolia, Chip and Joanna Gaines call Waco home and have also attracted fans to the central Lone Star state town who visit the Magnolia Market & Silos. The luxury home price in McClennan County is the lowest on the list with a $512,931 average. 5. Rehoboth, Delaware (Joe Biden) Sussex County, Delaware saw an 18.27% year-pver-year increase in the value of luxury homes year over year. Sussex County is home to numerous seaside resorts and popular beach towns such as Bethany Beach, Dewey Beach, Fenwick Island, Lewes, and Rehoboth Beach.  Properly nicknamed “The Nation’s Summer Capital” due to its popularity amongst politicians and its proximity to Washington, D.C., Rehoboth is the current escape for POTUS Joe Biden and Dr. Jill Biden. The Delaware-native had been vacationing to Rehoboth for decades prior to purchasing his second home in 2017.  During Biden’s presidency, he and the First Lady have been seen in perusing Browseabout Books, grabbing an ice cream scoop at Double Dippers and strolling on Gordons Pond Trail, amongst others. 6. Kennebunkport, Maine ( The value of luxury homes in Maine's York County increased 17.16% from 2021 to 2022. The southern Maine county is home to the charming coastal city of Kennebunkport, widely known as one of New England's most popular tourist destinations.  President George H. W. Bush, the 41st President of the United States, inherited a "Summer White House" retreat in the town of Kennebunkport, rightfully named "Walker's Point Estate." Similar to JFK’s Massachusetts compound, Walker’s Point Estate consists of three family-owned properties and has long served as a multi-generational getaway destination for the Bush family. 7. Edgartown, Massachusetts ( Dukes County, Massachusetts saw an 11.11% increase in the value of luxury homes from 2021 to 2022. The county consists of the island of Martha's Vineyard, the Elizabeth Islands, the island of Nomans Land and other islets. While the entire county only has a population of about 20,600, the largest island in the county is Martha’s Vineyard, which has long been a popular vacation home destination. The island is famous for its miles of public beaches, quaint shops and restaurants.  In 2019, Barack and Michelle Obama bought a slice of Martha’s Vineyard by way of a 29-acre, seven-bedroom and eight-and-a-half-bath estate for $11.25 million. Despite having the lowest value increase year over year of the seven presidential second home destinations we analyzed, Dukes County has an average home price of $2,590,922 — the highest priced real estate of these markets. Methodology To compile this report, Pacaso analyzed luxury real estate activity in counties where U.S. Presidents owned second homes and examined average values of homes in the top 20% of those markets and the year-over-year percentage changes. Home price data was provided by Zillow, MLS data sources, and real estate analytics firm

Inflation has reached its highest level since 1981 as the latest Consumer Price Index (CPI) increased 9.1% in June. In addition, mortgage rates in April surpassed 5% for the first time in over a decade and have remained elevated since. This is the first time in recent history that inflation is meaningfully higher than mortgage rates. As the cost of consumer goods in the U.S. rises faster than mortgage rates, there are financial decisions consumers should consider to hedge against inflation. Many advocate putting money into long-term assets such as real estate, including second homes, as a way to hedge against inflation. Although mortgage rates have nearly doubled since the start of 2021, it is important to remember that rates are still well below historical norms. For the past 50 years, 30-year fixed mortgage rates have averaged approximately 8%, even crossing above a staggering 18% in the early 1980s.  Inflation has reached levels we have not seen in over 40 years. Many economists believe that the CPI will remain elevated for the rest of this year and may hold up into 2024. As inflation rises, the cost of everything goes up, including real estate. However, when the CPI growth rate is higher than the current 30-year fixed mortgage rates, homeowners’ will be spending the same monthly amount but with inflated dollars. As a result, smart home shoppers tend to be less concerned about the current levels of mortgage rates when inflation is high. This could provide home buyers with a rare opportunity to make a stable-value investment and take advantage of the growing rate of depreciation of money. In an inflationary environment, consumers want to park their money somewhere that will lose the least amount of value. For that reason, real estate is often considered one of the best ways to hedge against — or beat — inflation. 

I’m Austin, CEO and co-founder of The housing market is picking up steam well into the spring home buying season. Although fewer homes than usual are being sold this spring, buyers are quickly snatching up those that are on the market — even when mortgage rates may be fluctuating. An uptick in mortgage applications indicates that people are optimistic about the market. Some things we’re seeing: 1. Sellers staying put, inventory hits pre-pandemic low According to 2. Fierce competition for desirable homes The current state of the real estate market continues to be highly competitive, as evidenced by the fact that almost half (48%) of the homes sold in the four weeks ending on April 30th were under contract within two weeks according by This spring, the scarcity of inventory is resulting in fewer homes being sold, but those that are 3. Home prices rise for third consecutive month According to a report originally 3. Homebuyers keep a watchful eye on fluctuating mortgage rates According to Meanwhile, the We'll continue to check in with updates, and encourage you to contact us with any questions about a market of interest.

Ready to buy your first home — or With the state of real estate always changing as new homes enter the market, every year showcases new Home financing is becoming more flexible Getting approved for a home loan is a first step for people dreaming of owning a house. The following real estate facts explore home financing options in more depth.  Residential home-buying trends While some buyers may have felt pushed to buy quickly at the onset of Covid-19 lockdowns, many consider their home to be a long-term commitment rather than a temporary alternative (like a short-term 13. A larger share of buyers opted for new homes vs older homes at the end of 2022. ( 14. Luxury second home transactions increased by 25% during Q2 2022. ( 15. 10% of home sales are from new builds in Q1 2023. ( 16. 11% of home buyers bought their home directly from the previous owner. ( 17. 51% of home buyers found their listing on the internet. ( 18. Luxury second homes maintained their value through 2022. ( 19. 81% of Americans value the location of a home over its size. ( 20. In April 2023, new single-family home purchases increased by 4.1% month-over-month. ( 21. Historically, homes listed during April 18-24 sold 14.1% faster than the average week. ( 22. Luxury second home sales have increased by 235% since Q1 2020. ( 23. 54% of millennials want to live close to bars and nightlife. ( 24. Home appreciation was up 21% nationwide in April 2022. ( 25. Existing home sales are down by 9.3% in 2023. ( 26. Unit sales are predicted to increase by 10% in 2024. ( 27. 80% of home buyers prefer a move-in-ready house over a fixer-upper. ( 28. Homes are spending an average of 43 days on the market in May 2023. ( 29. The number of homes on the market in May 2023 increased by 21.5% compared to May 2022. ( 30. The number of homes pending listings declined in May 2023 by 18.1% year-over-year. ( 31. 12.7% of homes sold in May 2023 had a price reduction. ( Housing shortage facts The unexpected increase in the demand for homes led to an understandable shortage in supply. The desire for primary and 32. In 2023, approximately 1.2 million single-family housing units will be under construction. ( 33. Active home listings dropped 28% between 2020 and 2021. ( 34. The US housing market faced a six million home housing shortage at the end of 2022. 35. Home sales in metro areas increased by 20.8% in May 2023 despite housing shortages. ( 36. Apartment builds are expected to reach a 40-year high in 2023. ( 37. 86% of home sellers listed their properties on multiple listing services. ( 38. 56% of home buyers said finding the right property was the most difficult part of the home-buying process. ( 39. 28% of home buyers found the availability of larger lots to be an influence on neighborhood choice. ( 40. New listings of homes for sale fell 25% in June 2023, compared to June 2022 data. ( 41. The average distance between previous and new residences is 50 miles. ( The rising cost of real estate As the price of real estate rises, so does the belief in its long-term value. Home buyers see real estate as a reliable store of value, and in some cases, the houses are being used as a secondary source of income. While a spotlight has been placed on corporations purchasing houses, real estate statistics reveal that the majority of 42. Home sales are predicted to decrease by 3.4% in 2023. ( 43. 72.5% of rental property investors in the U.S. are individuals. ( 44. 13% of home buyers found saving for the down payment to be the most difficult part of the home-buying process. ( 45. 10% of home buyers were dissatisfied with the home-buying process. ( 46. 11% of buyers wanted their real estate agent to help them with price negotiations. ( 47. 25% of home buyers reduced their spending on luxury items to purchase their home. ( 48. 88% of home buyers think that buying a home is still a good financial investment. ( 49. 45% of home buyers had a household income over $100,000. ( Second home-buying statistics Not everyone who buys property in suburban and rural areas is looking for a permanent change in location. Many home buyers 50. In summer 2021, second home transactions held a market share of 4.3%. ( 51. The U.S. vacation rental occupancy rate is forecast to be 56.4% in 2023. ( The state of home prices today It stands to reason that the current housing shortage would lead to an increase in home prices. Although many home buyers were motivated to leave their city, not all metro areas saw their populations decline. Many cities saw boosts to their populations and housing prices — likely aided by the implementation of 52. 72% of home listings were sold without ever reducing their price. ( 53. 9% of all home sales were identified as urgent. ( 54. In the first quarter of 2021, Boise, Idaho, saw a 28% year-over-year rise in house prices, the highest among metro areas. ( 55. In the first quarter of 2021, Austin, Texas, saw the second highest year-over-year rise in house prices at 23%. ( 56. Renting was more popular than buying in the vast majority of the largest U.S. metros in December 2022. ( 57. 24% of home sales were above the listing price. ( 58. 8% of home buyers sold a distressed property. ( 59. Debt delayed most home buyers by four years before they were able to purchase a home. ( 60. 27% of buyers compromised on the price of their home purchase. ( Allow these real estate facts to guide you as you consider purchasing your first or

I’m Austin, CEO and co-founder of The housing market is indicating signs of recovery and stability in home prices, and we at Pacaso ended the summer with strong sales. Prospective homebuyers are increasingly turning to new construction due to the shortage of existing home listings and continuously fluctuating mortgage rates. This shift in buying behavior has resulted in a surge in new home sales and a modest uptick in pending sales, suggesting positive momentum in the market.  Here is a deeper dive into these observations: Home builders fuel slight sales surge Prospective homebuyers are undoubtedly feeling frustration amid scarce listings for existing homes. As a result, Additionally, according to In August 2023, Pacaso saw its strongest month of the year so far, recording a 142% increase in funded shares compared to July 2023.  Inventory remains low as buyers look to alternatives New listings hit a seasonal low in July, with just under 336,000 properties coming to the market according to However, Given the scarcity of inventory, homebuyers have alternative options like the rental market, which can provide an affordable option as they save up for a home purchase. In top second home markets, co-ownership options like Pacaso offer an innovative solution amidst soaring rates. This ownership  model enables buyers to own a portion of a luxury second home, reducing their monthly mortgage costs in markets like Vail and Tahoe compared to full ownership. Pacaso's resale market is also thriving, with homes averaging a more than Housing market set to embrace 7%+ rates In August, mortgage rates reached their highest levels in 21 years, as reported by While current mortgage rates are hovering above seven percent, the forecasted rates from Annual home prices stabilize, indicating housing market recovery Low inventory continues to cause U.S. home prices to increase. However, the recent rise in mortgage rates to 7% has cooled down the previously upward trajectory of home prices, which had been steadily increasing throughout the year. In June, prices rose on a monthly basis while annual prices remained unchanged, signaling a shift in the housing market. We'll continue to check in with updates, and encourage you to contact us with any questions about a market of interest.

I’m Austin, CEO and co-founder of The real estate market is seeing major shifts this month, driven by mortgage rate changes and ongoing supply-demand dynamics. Last week, the Fed cut rates by 50 basis points, dropping mortgage rates to their lowest in two years. Demand was already rising in September, with more buyers re-entering the market as rates were dropping. This creates more liquidity for the vacation home market and empowers buyers to act. At Pacaso, 50% of our homes already offer financing at 5% or lower, making luxury co-ownership more accessible and attractive for families. Curious to know more? I share some of my latest insights on the U.S. housing market below. We'll continue to check in with any new developments, and encourage you to Mortgage rates continue to fall, with the contract rate on a 30-year fixed mortgage With rates dropping, buyer demand is on the rise. Mortgage applications surged by 14.2% in just one week according to The drop in mortgage rates below 6% has the potential to drive demand, which could increase home prices in many markets. While high rates over the past year have slowed price growth, an influx of buyers competing for a limited number of homes could reverse this trend, especially in popular markets. Prices will likely fluctuate in response to these changing dynamics and some regions will see sharper increases than others. The U.S. is grappling with a significant housing shortage — we are short

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 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 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 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.  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.

Nearly everyone can agree that America has a housing supply problem. By the end of 2023, the U.S. had The Y.I.M.B.Y. movement in action The Y.I.M.B.Y. movement—it stands for yes, in my backyard—is gaining momentum in American communities. Local officials and residents are giving the go-ahead to accessory dwelling units, implementing “missing middle” ordinances, and rezoning for greater housing capacity. These efforts aim to address the housing shortage by creating a more diverse and plentiful supply of homes. "When it comes to solving the housing crisis, we need a dual approach: more construction and more efficient use of existing housing stock,” Pacaso CEO and Co-Founder Austin Allison said. “Communities across the country increasingly are open to innovative solutions, including higher density and co-ownership models that maximize the functionality of available homes. Embracing these strategies will lead to more options for homebuyers and better use of our limited resources." Pacaso set out to identify U.S. metropolitan areas that are embracing change to encourage density and provide a greater array of housing options. To find these Y.I.M.B.Y. trendsetters, we focused on areas with a clear need for new housing, where construction has been plentiful and price growth relatively modest. We concentrated on new development within existing communities, which are more frequently the source of local opposition, and excluded metros with high-growth exurban sprawl. "It's great to see examples of localities that are advancing pro-housing policies so activists, elected officials, and agencies can mirror their success in more places," said Jessamyn Garner, communications director at In collaboration with The top ten Y.I.M.B.Y markets revealed 1. Washington, D.C. Greater Washington, D.C., which includes parts of Virginia, Maryland, and West Virginia, led the pack far and away. Among the areas in greater Washington showing clear demand for new housing, more than 70 percent met our definition of Y.I.M.B.Y. While greater Washington has many existing high-density communities, the region rose to the top of our roster because its localities are leading advocates of Y.I.M.B.Y. land-use policy. Just outside Washington, D.C., Virginia's Arlington County adopted a “ 2. Chicago, Illinois Second on our list is Chicago, Illinois, which differs from some of our other top-ranked metros because it lacks the same strength of housing demand. Only about 7 percent of ZIP code areas in the 10 million-strong population of greater Chicago met our criteria for clear housing demand. However, those high-demand areas strongly correlated with our Y.I.M.B.Y. criteria. The city updated its Affordable Requirements Ordinance in 2021 to facilitate more affordable housing and encourage new construction. 3. Austin, Texas Austin, Texas, which ranks third on our list, stood out for the clear demand we found in all of its ZIP code areas; almost half of those emerged as Y.I.M.B.Y. In May, the Austin City Council voted to reduce the minimum single-family lot size and allow triplexes, townhomes, and other small multifamily developments in districts zoned for single-family houses. Nearby San Antonio also saw relatively large shares of their highly sought-after areas embracing Y.I.M.B.Y.ism.  4. Minneapolis, Minnesota Fourth on our list is Minneapolis, Minnesota. In 2019, it became the first large U.S. city to eliminate single-family zoning, a move intended to spur development of duplexes and other 5. Columbus, Ohio Columbus, Ohio, also high on the list, appears to be poised for even more housing The Salt Lake City area ranked among the top U.S. metros. In Utah, legislators passed a law in 2023 that requires municipalities and counties to regulate Finally, New York and Philadelphia, both desirable metros with high density, boast some of the most Y.I.M.B.Y. ZIP codes in the nation. Y.I.M.B.Y. locales and green-zone metros on the rise  The up-and-coming Y.I.M.B.Y. regions of Seattle (22.6%)  and Portland, Oregon (21.9%), stand out as early movers in streamlining construction of accessory dwelling units, or in-law units, and other land-use policy reforms.  Other high-growth metros proved to have weaker Y.I.M.B.Y. tendencies because their growth relied more squarely on exurban and low-density development. These include the regions of Phoenix and Las Vegas in particular, as well as Atlanta, Dallas, Nashville, and Florida’s Orlando and Tampa, where construction is taking place primarily outside areas with high demand in what are called green zones. Policymakers and economists are almost universally aligned in agreement that the country needs more housing to keep up with demand. But places at the top of our Y.I.M.B.Y. scale have been more proactive than others in loosening zoning restrictions, attracting development, and embracing innovative ways to make more efficient use of existing housing stock. They’re rethinking single-family zoning, encouraging mother-in-law or accessory dwelling units, and embracing innovations such as co-ownership. Pacaso is a member of Methodology Pacaso analysts worked with