Founded in 2020, Pacaso currently operates in 40 destinations worldwide and has sold nearly 600 units since launch.
EBP analyzed the impact of Pacaso homes in five second home destinations across the United States: The San Francisco Bay Areathe mountains of colorado, Palm SpringsAnd South Floridaand on a larger scale New York City space. Download the full report here.
Due to high demand and low inventory, many destination communities around United State Struggling with the rising costs of single-family homes.
“These findings reinforce today’s second homes problem and how the co-ownership model can help Bakasso,” said Bakasso’s co-founder and CEO. Austin Alison. “The second home on average remains empty for ten months of the year, which is wasteful use of single-family homes in the destination communities. Through shared ownership, Pacaso aggregates demand into fewer high-end homes, and because homes are occupied eleven months out of the year, Owners spend more on local businesses.”
After switching to working from home, there are higher levels of demand for homes in the target communities. This demand, combined with a lack of supply, has driven home prices to unprecedented levels. Instead of eight homebuyers buying seconds for eight mid-priced detached homes, which drives prices even further, Pacaso is consolidating those eight homebuyers into just one luxury home, relieving the pressure on the mid-price level.
Consolidation of home demand in first class real estate:
- The EBP study describes the “mitigating effect” that Pacaso has on local housing market dynamics: By offering out-of-town buyers a desirable alternative to purchasing a single-family home (which will remain empty most of the year), Pacaso helps focus buyer demand in fewer first-class homes.
- The average Pacaso home costs six times that of the average second home and seven times more than the average primary home, meaning the company is unlikely to compete with middle-class homebuyers in the five markets studied by EBP.
Shared ownership means year-round use of the house, which means more support for local businesses:
- On average, the second house remains empty over the course of ten months of the year. By comparison, the average Pacaso home is occupied nearly 90% of the year — nearly 11 months. Because the average Pacaso home is occupied more months of the year than other second homes, the owners spend more money in the community.
- Based on analysis of data from the Bureau of Labor Statistics on consumer expenditures, Census Bureau data, and Pacaso home occupancy data, EBP found that Pacaso homes contribute about 10 times more to local economic activity than typical second homes. Average Pacaso House Breeds $48,390 In annual spending compared to a typical second home, which benefits restaurants, local stores, and many other businesses.
Pacaso owners contribute significantly through local and state taxes:
- On top of paying all applicable property taxes, the EBP study also found that across the five markets analyzed, Pacaso owners generate more local and state tax revenue than the typical second home owner, benefiting important local services such as schools, fire stations, or local parks.
METHODOLOGY: Study findings are based on a range of sources including the Bakasso Home Use Survey, along with broader data sources on local property prices, household spending, and tax rates.
About Pacaso
Pacaso® is a technology-driven marketplace that is modernizing real estate co-ownership to make owning a second home possible and enjoyable for more people. Pacaso curates luxury listings with premium amenities and upscale contemporary interior design, provides property with integrated financing and, after purchase, professionally manages the home and supports smooth resale. Co-founded Austin Alison And Spencer Rascoff In 2020, Pacaso operates in more than 40 second home destinations around the world. Pacaso has been certified as a producer Good place to work And recognized as one of Glassdoor’s 2022 Best Workplaces.
The source is Bakassu
