From Pacaso CEO: Market Trends Q3 2025

With summer winding down and the year’s midpoint behind us, the luxury real estate landscape looks clearer, and brighter, than it did just a few months ago. Buyers and sellers are navigating calmer waters: prices at the high end have held steady, interest in co-ownership keeps climbing, and industry trends point to more meaningful travel. Here are some key takeaways as we head into the second half of 2025, and why the outlook for second-home owners has never felt more promising.

Co-ownership is moving into the mainstream

When we launched Pacaso in 2020, many buyers still assumed “real” ownership meant holding 100% of a home, even if it was rarely used.. That mindset is changing fast. In Pacaso’s latest consumer pulse survey, 68% of respondents considered professionally managed, part-time ownership appealing or very appealing, and people who had already talked about the idea with friends or family were 3.4 times more likely to find it appealing.Cost and ease of management are the main drivers behind co-ownership. 81% of all respondents said they’d be more likely to buy a vacation home if they didn’t shoulder the full price. Broader market research tells the same story. According to a survey from Rocket Mortgage, nearly 71% of Gen Z respondents are actively considering co-buying a home with friends or family, and 33% of Gen Z adults are open to it (New York Times). That’s nearly twice the rate of Millennials — reflecting shifting social norms and desire for shared lifestyle investments.

Luxury real estate remains a safe haven

Though overall home sales cooled in early 2025, the top of the market keeps defying gravity. High-end properties outperformed every other price segment in 2024 and Q1 2025, according to Realtor.com’s April Luxury Outlook.Sotheby’s 2025 Mid-Year Luxury Outlook underscores the trend: affluent buyers continue to pay cash, insulating the segment from interest-rate swings and confirming luxury real estate as a “safe haven” during market volatility.What’s driving demand? A combination of strong stock-market returns, limited home inventory in some markets and the appeal of tangible assets you can enjoy today.

Affluent Americans are looking overseas

Global living isn’t just for digital nomads. Coldwell Banker’s 2024 Trend Report found that nearly 40% of high-net-worth Americans plan to buy a second home abroad within the next year, and two-thirds expect to do so within five years. That prediction has come true and Europe tops the wish list.London is a prime example. Beauchamp Estates reports U.S. citizens now account for roughly one-quarter of prime London purchases, up sharply from 2023, as buyers seize currency advantages and lifestyle perks. However the process of purchasing real estate abroad can be lengthy and complicated, even for the ultra-wealthy.That global appetite is why Pacaso is expanding beyond North America. We’re continuing to focus on adding more Pacaso homes in Europe, bringing our seamless co-ownership model and simplified transaction process to some of the world’s most coveted vacation destinations.

Experiential luxury is redefining value

Whether you’re traveling or buying a home, experience is quickly becoming the true measure of luxury. Hilton’s 2025 Trends Report cites the rise of “Slow Travel,” noting that 73% of travelers now seek authentic local experiences and are gravitating toward secondary-city stays. Meanwhile, the IGES 2025 U.S. Tourism Trends study highlights a broader shift toward personalization, cultural immersion, and wellness-focused trips. This same experiential mindset is reshaping real estate: “The feeling a home delivers matters as much as the address,” observes Tammy Fahmi of Sotheby’s International Realty—a change that’s prompting buyers to pay premiums for properties aligned with their lifestyle ideals (Sotheby’s). Pacaso’s own design and service philosophy reflects this evolution. Our owners tell us the real luxury isn't just the marble countertops; it's the ease of hosting your loved ones with plenty of space to unwind, the peaceful moments spent sipping morning coffee on the balcony with your favorite mountain view, and the ritual of creating shared memories in a special place, year after year.

What this means for you

Luxury real estate is evolving on two parallel tracks: shared ownership is accelerating, and lifestyle-led demand is strengthening at the high end. Together, those forces create an unprecedented opportunity to enrich your life through the purchase of a second home.Pacaso takes the complexity out of second home ownership, giving you effortless access to extraordinary properties around the world. Whether you’re eyeing a beachfront retreat in Cabo, a pied-à-terre in London, or a ski retreat in Aspen, now is the perfect time to purchase your share of a luxury vacation home.Ready to explore co-ownership or add another Pacaso to your collection? Let’s talk.Austin AllisonCEO and Co-founder of Pacaso