Co-ownership growth report

Discover the leading counties for co-ownership growth

Timed to Valentine's Day, we unveil the Co-Ownership Growth Report which reveals the top ten counties with the most significant annual increases in co-ownership home transactions, along with their corresponding year-over-year Home Price Index (HPI) growth across Core Based Statistical Areas (CBSAs). The results? Cuffing season has a whole new meaning: Non-married partners are coming together to combat rising prices across rural and urban markets."For those eager to enter the real estate market, high barriers to entry such as high home prices and high mortgage rates often prevent people from making a home purchase. Co-owning with friends or family offers a solution to lower that barrier and provides a hack for the current affordability crisis sweeping the nation. In our recent report, we affirm that in regions experiencing the highest co-ownership growth, there has also been noteworthy year-over-year growth in home prices,” said Pacaso CEO and Co-Founder Austin Allison.The findings highlight a link between rising home prices and the upswing in co-ownership, evident in the positive correlation between the year-over-year Home Price Index (HPI) percentage change and co-ownership percentage change. On average, counties experienced a 6.8% HPI growth and a substantial 21.1% co-ownership growth. This trend extends beyond regional borders, with robust co-ownership growth observed in diverse states such as Virginia, Colorado, Minnesota, Utah, and more. Furthermore, the surge in co-ownership is not confined to specific urban or rural housing markets, underscoring its widespread and inclusive presence in the real estate landscape.

“Rising home prices present a significant challenge for Americans, and there are two key solutions to addressing it: creating additional inventory and making better utilization of existing housing supply. The latter involves co-ownership and our data suggests that family, friends, and non-married partners are leaning on co-ownership to combat affordability challenges. Just as carpooling reduces traffic congestion, co-ownership offers a more sustainable way to own a home,” continued Allison.In its Consumer Housing Trends Report for 2023, Zillow also noted the growing trend, stating that "cobuying is the norm, particularly among partnered buyers." Half of the buyers (50%) engaged in cobuying with a partner or spouse, while 44% of the 6,500 surveyed buyers identified affordability as the primary motivation for co-ownership. Our inaugural Pacaso Co-Ownership Growth Report further explores the dynamics of non-married co-ownership.

Co-ownership growth, top ten counties

To determine the top co-ownership markets, Pacaso analyzed the year-over-year growth in co-ownership transactions across the United States and their corresponding CBSA HPI. Here are the 10 U.S. counties that saw the biggest increases:

Virginia is for lovers and for co-owners

Virginia takes the lead for the state with the greatest growth in co-ownership transactions year-over-year. Multiple counties in Virginia, including Stafford, Hernrico, Fairfax, Greene, Martinsville, and Suffolk, consistently show high year-over-year co-ownership percentage changes, suggesting a potential regional or local housing market trend driving increased co-ownership. "As major companies relocate to Virginia and bring new talent and resources to the region, we're witnessing a surge in home prices, highlighting the area's growing appeal for co-ownership. With Amazon establishing a second headquarters and aerospace and defense giants like Boeing, Raytheon, Northrop Grumman, and General Dynamics moving offices to Virginia, it's evident that the state is a hub for innovation," continued Allison. "The data suggests that perhaps new tech talent and friends are bunking up to combat the region’s rising prices."Stafford County experienced a notable surge in co-ownership home transactions, with a 28.3% increase, along with a more than 4.3% rise in home prices. Located 25 miles south of the Washington, DC Beltway and 50 miles north of Richmond, Virginia, Stafford County is home to Marine Base Quantico, the FBI Lab/Academy, and NCIS. With its abundance of trails, rivers, wineries, breweries, and close proximity to the Nation’s Capital, Stafford offers a unique blend of suburban and rural living, coupled with historical significance. Notably, one of Stafford's most famous residents was George Washington, who resided here as a youngster from the ages of six to nineteen.Among the Virginia counties witnessing substantial co-ownership growth, Martinsville County, Virginia, experienced the largest home price increase year-over-year at 20.3%. Located in Southwest Virginia, Martinsville is well known for the Martinsville Speedway and NASCAR racing, as well as nearby rivers, lakes and mountains.Axios reported that employment in Northern Virginia has "roared back" since the pandemic, with Fairfax County experiencing a 6% growth between 2019 and 2022, reaching nearly 1 million jobs, according to the U.S. Bureau of Economic Analysis.

Wild west real estate boom

Morgan County, Utah, witnessed the most significant surge in co-ownership, with an impressive 42.7% year-over-year increase and a 3.4% uptick in Home Price Index (HPI). Morgan, Utah has garnered increased popularity since late 2021, attributed in part to the introduction of Wasatch Peaks Ranch, a sprawling 12,700-acre ultra-luxury private ski resort. Situated just 35 minutes from downtown Salt Lake City, the Ranch encompasses 3,000 acres of skiable terrain.

Co-ownership spreads across Midwest

Two Midwest states, North Dakota and Minnesota, have earned spots on the list of counties experiencing significant co-ownership growth. Cass County, North Dakota, experienced a 21.1% growth in co-ownership year-over-year and is the most populous county in North Dakota. It is home to Fargo, the state's most populous city and county seat.Dodge County, Minnesota, saw a 16% increase in co-ownership. The county neighbors Rochester, Minnesota, which is home to Mayo Clinic’s national headquarters and Rochester campus. According to a February 2022 report, Mayo Clinic in Rochester had 42,000 staff members. There is also a $5 billion plan to redesign Mayo Clinic’s campus, which could drive economic impact, home price increases, and attract more people to the area for the Clinic.

Love has no limits, neither does co-ownership

The data reveals that the top ten counties and the growth of co-ownership is not confined to a specific region, as evidenced by growth in co-ownership across states such as Colorado, Minnesota, North Dakota, Utah, and Virginia. The co-ownership growth is also not confined to a specific urban or rural housing market. While the East Coast state of Virginia saw the most significant year-over-year growth, counties across the nation experienced a rise in co-ownership. Out west, representation comes from places like Weld County, Colorado, which saw a 14.8% surge in co-ownership. Weld County, located just 44 miles from Denver, is home to one of Colorado's newest ski areas, 'Hoedown Hill,' situated on county farmland.

Methodology

Pacaso identified the leading co-ownership markets by choosing the 10 counties with the highest year-over-year growth in co-ownership transactions from the end of year 2022 to end of year 2023. The definition of co-owned homes in this context encompasses transactions involving various vesting codes and parties as determined through ownership names in public record data, including domestic partners, joint tenants, tenants in common, and excludes married couples. The report also highlights the year-over-year growth in Home Price Index (HPI) from 2022 to 2023, analyzing the change in home price across Core Based Statistical Areas (CBSAs).Data was provided by real estate analytics firm First American Data & Analytics and includes a sizable share of the market that is taken to be representative of the whole.

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