Pacaso Reinvents Vacation Home Ownership with Co-Ownership Model

Pacaso, co-founded by Spencer Rascoff, a former Zillow executive, and Austin Allison, who previously sold his company to Zillow for $125 million, is transforming the $1.3 trillion U.S. vacation home market. By introducing a tech-powered co-ownership model, the company aims to make luxury vacation homes more accessible while addressing inefficiencies in the market.

Pacaso Reinvents Vacation Home Ownership with Co-Ownership Model
Spencer Rascoff and Austin Allison

Pacaso, co-founded by Spencer Rascoff, a former Zillow executive, and Austin Allison, who previously sold his company to Zillow for $125 million, is transforming the $1.3 trillion U.S. vacation home market. By introducing a tech-powered co-ownership model, the company aims to make luxury vacation homes more accessible while addressing inefficiencies in the market.

The co-ownership model allows buyers to purchase shares of a luxury vacation home through a streamlined digital platform. Pacaso ensures a seamless transaction process, stating, “Clients easily buy, finance, and resell shares of luxury homes through Pacaso’s intuitive platform.” The company also handles all operational aspects, including maintenance, furnishings, and scheduling, allowing co-owners to focus solely on enjoying their vacation time.

Historically, vacation homes in the U.S. have remained vacant up to 90% of the year. Pacaso’s model significantly improves occupancy rates, benefiting not only the co-owners but also local economies. By keeping homes occupied year-round, the company maximizes the value of the properties and creates a win-win scenario for all stakeholders.

Expanding Reach and Growing Demand

Since its inception, Pacaso has reported nearly $1 billion in transactions and over 1,500 satisfied co-owners. The company also highlighted that homes under its management have appreciated nearly 10% since 2021, doubling the growth rate of the broader luxury housing market. The co-ownership model itself is gaining traction, with U.S. demand growing by 21% annually.

The company is rapidly expanding its global footprint, having recently entered major markets like Paris and London. In Paris, demand was so high that Pacaso’s first property sold out quickly, prompting the purchase of a second property on the same street. With an eye on scaling its operations, the company is positioning itself as a leader in the co-ownership space worldwide.

A Model Drawing Investor Attention

The innovative approach and strong financial performance of Pacaso have not gone unnoticed. The company generates multiple revenue streams, including transaction fees, recurring property management fees, and financing services tailored to co-owners. Leading firms such as SoftBank and Maveron have backed Pacaso, recognizing the potential of its tech-driven model.

The company’s 2024 H1 financials show promising growth, with a 38% year-over-year increase in adjusted gross profit and over $100 million in total gross profits. Moreover, research by Coldwell Banker reveals that 40% of Americans plan to purchase a vacation home in the coming year, signaling a sustained demand for such offerings.

Investors now have the opportunity to participate in this growing market. Pacaso has announced, “We are accepting public investment in this co-ownership boom for just $2.70 a share.” As the vacation home market continues to evolve, Pacaso stands at the forefront, combining real estate expertise with cutting-edge technology to redefine luxury home ownership.