Data and research

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.

Gain insights from Spencer Rascoff, Co-Founder of Zillow, Pacaso, Hotwire, and leading experts Adam Checchi from Checchi Capital and Brian Gray from Gursey Schneider on financial planning, real estate investing, and the current economic landscape. The discussion covered a range of topics, including key takeaways such as:

Gain the latest insights, The discussion with Redfin CEO Glenn Kelman covered a range of topics, including key takeaways such as:

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.

Gain insights from industry experts on the latest in luxury residential, trends, and predictions for what’s to come in real estate, in Pacaso's recent webinar hosted by co-founder and former Zillow CEO Spencer Rascoff. The discussion featured insights from experts in luxury residential real estate, proptech, housing, and venture capital industries, including The discussion covered a range of topics, including key takeaways such as: Limited housing supply has resulted in fewer options for both buyers and sellers. Many potential buyers are waiting for new properties to be listed. The scarcity of available homes is a key factor in maintaining high property prices. This situation has led to a significant decrease in housing affordability, reaching a 37- year-low. One potential solution to address this issue is to introduce new housing supply, including in the luxury market. Home builders are currently benefiting from these conditions, as evidenced by increased home prices and doubled mortgage rates. This trend is further highlighted by the notable investment of Warren Buffet into home builders, marking his first-time involvement in this sector. The advice given to buyers is not to anticipate a decline in property prices, but rather to be prepared for a potential decrease in available properties and an increase in monthly payments. If buying is preferred, there's a saying in the real estate industry to prioritize the property itself over the current interest rate. A home is an extension of our identity, and even though mortgage rates have reached a 20-year peak, experts urge buyers to remember that a home represents a lasting investment. Regarding affordability, considering alternatives to traditional buying is also a viable solution. The once-cherished aspiration of owning a vacation home in different markets has been disrupted by these exorbitant interest rates. Co-ownership stands out as a clever approach. Comparatively, a buyer's monthly mortgage payment for owning a Pacaso property could be nearly 50% lower than that of an average home in sought-after markets such as Vail or Tahoe. Certain buyers approach real estate with a YOLO mindset. The message from housing experts is clear: why wait? Enjoy skiing in Vail while your knees will still cooperate. Significantly, Pacaso's revenue saw a 51% increase from Q1 to Q2, indicating a continued interest from buyers who are actively making purchases. This mindset encourages embracing the present, whether for second homes or primary residences. The short-term outlook remains somewhat uncertain due to fluctuating rates, historically low inventory, and affordability challenges. Nevertheless, a catastrophic crash is not anticipated. Whether renting or owning, for primary or secondary homes, everyone is connected to real estate in some capacity, ensuring a continued cycle of buying and selling. Experts hold a positive yet cautious optimism for the long-term prospects of the luxury housing market.

June 2023 proved to be a strong month for Pacaso, as we experienced a 59% increase in funded shares compared to May 2023. The enthusiasm and confidence shown by our community also resulted in year-over-year growth compared to June 2022. These impressive figures reinforce our commitment to providing exceptional ownership opportunities and solidify demand for second homes despite a fluctuating market. What’s motivating these second home buyers and more is captured in the 2023 Second Home Attitude Report — a quantitative survey-driven report conducted by Pacaso and Applied Research West, a trusted research firm. The report identifies trends around second homeowners and aspiring second homeowners’ preferences and gauges the factors considered when deciding to buy a second home. This report uses data from a June 2023 survey conducted among current and aspiring second homeowners with a net worth of $250,000 or greater per year across the United States. 81% of people would rather spend money today on family vacations or in a second home versus passing more money along to children as inheritance. This data suggests a strong desire among respondents to prioritize experiences and the enjoyment of assets in the present moment, emphasizing the value placed on creating lasting memories with loved ones. "I'm a big fan of Bill Perkins' book ' 57% of aspiring second homeowners believe their extended family would be more interested in spending time with them if they owned or co-owned a second home. "My wife and I live in Cleveland, while our adult children reside in California and Upstate New York. Finding a time and place for our entire family to come together has gotten increasingly more challenging. That's why we made the decision to buy a share of a Pacaso property in Cabo, and I must say, it has far exceeded our expectations. Beautiful places are definitely a draw for the kids, as sometimes mom and dad alone aren't enough. Having a second home, as opposed to a revolving door of rentals, has provided us with a genuine sense of belonging and a place to reconnect," said David W., Pacaso homeowner. "I wouldn't trade those moments of togetherness with my children and extended family for anything. Finally, I can proudly claim the title of the cool dad." Furthermore, 62% of current and aspiring second homeowners spend two weeks per year or less on vacation with extended family, but would like these vacations to happen more often. The "We have seen a significant surge in demand for second homes in drive markets from major metro cities," continued Austin Allison. "People are seeking the perfect balance between convenience via proximity and the serene escape of a second home. The desire to have a getaway within a reasonable driving distance became a growing trend during the pandemic, but is still a top preference with current and soon-to-be second homeowners. The Lake Tahoe area serves as a prime example, located just one hour away from Reno, four hours from San Francisco, and two hours from Sacramento." Pacaso commissioned market research firm Applied Research West on a quantitative online study aimed at understanding the second home attitudes and usage preferences of existing and non-second homeowners. The research was conducted to more than 400 people in June 2023 amongst households with incomes equivalent to $250,000 or greater across the United States. 

I’m Austin, CEO and co-founder of As summer officially began last week, the US housing market saw double-digit declines in available homes for sale. However, home builders are stepping up their game by increasing new construction of inventory, reaching the highest levels seen in over a year. Homebuyers are still also showing unwavering interest in actively searching for and purchasing homes despite these challenges. This strong desire to buy and shop in the housing market reflects a resilient and optimistic outlook for the future. As a bonus, the likelihood of a US recession has decreased thanks to the resolution of economic risks. Here are some notable observations: 1. Inventory levels experience double-digit decline According to 2. Home builders respond to low inventory In May, housing starts and permits reached the highest level seen in over a year. Housing starts rose to 1.63 million (SAAR) in May, representing a 21.7% increase from the revised figures of April 2023 and a 5.7% increase from May 2022, according to the 3. Home prices continue to rise According to 4. Homebuyers respond to declining mortgage rates All in all, rates are floating around 7%. While higher interest rates may initially seem unfavorable to real estate investors, they can actually 5. Likelihood of a U.S. recession diminishes According to We'll continue to check in with updates, and encourage you to

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.

The macro-environment is shifting rapidly. Hear from industry experts about how high-net-worth individuals can adapt to this turbulent landscape in Pacaso's recent webinar. Hosted by Pacaso co-founder and chairman and former Zillow CEO Spencer Rascoff, the panel features insights from experts in the housing, venture capital, private aviation and employment industries. Guests include The panelists share their thoughts on the current macro environment and provide insights on how high-net-worth individuals are adapting to this rapidly changing landscape. The discussion covered a range of topics including the: One thing remains clear: During times of economic uncertainty, savvy buyers turn to real estate to park their money. Real estate holds equity.

I’m Austin, CEO and co-founder of As the winter thaws and flowers begin to bloom, many wonder if the spring housing market is set to heat up. At Pacaso, 2023 is off to a strong start. We see early signs of buyers eager to make their second homeownership dreams a reality. However, with recent bank turmoil and ongoing macroeconomic uncertainty, this year's market may differ from traditional spring housing markets. Here are some spring trends on the horizon —and how Pacaso stacks up: 1. Buyers are springing back to the market  Several recent indicators point to growing buyer demand. One 2. Home buyers are shopping as rates continue to fluctuate Despite fluctuating mortgage rates, consumer interest is increasing. Mortgage-purchase applications increased 17% from February, increasing for the third straight week according to These pending sales could be directly correlated with rates decreasing. On March 30, the average weekly rates dropped from 6.42% to 6.32%, according to 3. Low inventory drives sight unseen sales Despite buyers preparing to enter the market and take on record-high rates, inventory continues to be an obstacle for many home buyers. According to a 4. Home prices rise, and premier destinations remain stable Many real estate experts forecast that home prices will be under pressure for the next year or two due to macro uncertainty and interest rates. However, the market is seeing an encouraging turn with strong home sales at the start of this year. February brought the strongest one-month gain since May 2022, with prices rising nationally by 0.16% according to Home prices will continue to vary greatly depending on the specific market's supply and demand levels. Pacaso focuses operations in markets where demand is projected to remain strong and home prices are expected to increase. For instance, Aspen's Pitkin County is experiencing a historic shortage of inventory, but demand remains high due to its location, world-class skiing and outdoor activities, and the growing trend of remote work. In such communities, primary and secondary homes tend to hold their value and even appreciate over time. 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 crash of Silicon Valley Bank has left many unanswered questions for the greater macro-economic environment, but one thing remains clear: Few other investments offer the same stability, reliability and fulfillment as real estate. During times of economic uncertainty, savvy buyers can turn to real estate to park their money. There’s value in parking money into something tangible and sentimental like a second home — a purchase that has historically weathered hard times better than the stock market. Here are some of the latest developments you need to know about in the wake of the banking turmoil: Mortgage rates dip ahead of the spring real estate market. The average rate for the popular 30-year fixed mortgage dropped to 6.18% on Monday, according to As mortgage rates dropped, the average U.S. home price also decreased 1.8% year-over-year during the four weeks ending March 12, according to — Joel Kan, MBA Vice President and Deputy Chief Economist. The National Association of Homebuilders (NAHB) remains cautiously optimistic as the nation experiences a third consecutive monthly increase in builder sentiment. One of the biggest concerns with the Silicon Valley Bank's collapse is its impact on the construction industry. Many developers relied on banks to finance their construction projects. With the closure of these banks, many developers may find themselves short of funds for their ongoing and future projects, but with an increasingly low supply of affordable housing, homebuilders must continue to push forward with developments. — Alicia Huey, While the long-term effects of the current banking turmoil are still unknown, it is clear that the real estate industry is facing a challenging environment. However, with careful planning and consideration, the industry still has potential for growth and innovation. Pacaso has experienced increased demand in our luxury second homes, with deposits increasing 90% in the first two months of 2023 compared to the last two months of 2022. We’re seeing homebuyers coming back now that they have adjusted to the newly higher interest rates of 2023. We'll continue to check in with updates, and encourage you to contact us with any questions about a market of interest.