Owning a second home is now more affordable thanks to Pacaso, which offers a variety of partial ownership options. We polled Pacaso CEO and co-founder Austin Allison for his take on why owning a vacation home is now worth a second look.
A Pacaso home in Sonoma Valley, Calif., boasts a picturesque pool.
What is the main concept behind Pacaso, and why do you think there is a need for it?
Pacaso is the modern way to buy and own an amazing second home. We’ve modernized the generations-old practice of co-owning a second home with fully managed LLC co-ownership to make it possible for people to own the second home of their dreams for one-eighth of the cost.
Second home ownership is a dream to many but a reality for few. The largest barriers are second home purchase price and purchase justification—it’s hard to rationalize buying a whole home you’ll use less than six weeks a year, or taking on the part-time job of managing your second home. Our business model at Pacaso addresses both of these challenges head-on. When you buy a second home, you’re unlocking a chapter to another life, and our hope with Pacaso is to enrich more lives and make second home ownership possible for more people.
Pacaso will create a property LLC for each home, find and vet co-owners, and handle all the sales details to make owning a second home easy.
How does Pacaso make owning a second home easier?
Pacaso is the easy button for second home ownership. We curate listings in top second home destinations, bring together and organize the ownership group, manage the legal and financing process, professionally design and furnish the home, provide the technology so owners can easily and equitably schedule time, manage the home on an ongoing basis and support a frictionless resell process in partnership with a real estate agent.
What are some of the markets where you have recently expanded?
Pacaso currently offers homes in more than 30 top destinations in the U.S. and Spain. As of late, we’ve introduced Pacaso globally in Marbella, Spain; expanded our footprint in California to Carmel and Santa Barbara; and introduced new homes in Hilton Head, S.C.; Bend, Ore.; Jackson, Wyo.; and the Florida Keys.
A four-bedroom home nestled in the mountains in the private enclave of Flores Montanas in La Quinta, Calif.
Where do you hope to expand next?
We are always looking for popular second home destinations in the U.S. and internationally to bring Pacaso to! We have our eyes set on popular getaway destinations and look forward to sharing more soon.
Any second home trends you are seeing since the pandemic began?
Across the nation, second home rate locks increased throughout the pandemic, and I suspect in 2022 second home sales will continue to outpace prepandemic levels given the permanent shifts in the way people live and work, and also where they choose to get away from it all.
I also predict a new wave of second home markets in 2022 as this widespread demand is creating a new wave of second home markets with more moderate median home prices but the same types of amenities and outdoor recreation options typical of their more famous counterparts.