Buying a house with friends: 9 tips for success

Are you starting a new chapter in a European city or Caribbean retreat? Maybe splitting your time between your current home and a villa abroad appeals to you. While planning an international move can feel exhilarating, the logistics can also quickly become overwhelming — particularly the question of how to handle shipping while moving overseas.  Moving belongings overseas presents unique challenges, from navigating customs regulations to knowing what transportation methods are available. Whether you’re relocating permanently or simply enjoying the flexibility of a second home overseas, figuring out how to transport your possessions efficiently and affordably is crucial.  Below, we’ll walk you through the key considerations and options for shipping belongings overseas and Initial planning and preparation for moving abroad shipping Moving internationally requires careful initial planning. Before you think about quotes and carriers, you’ll first want to take a look at your belongings.  Declutter your stuff Reducing the volume of items you plan to ship is paramount. Not only will this significantly impact your moving overseas shipping costs, but it will also simplify the entire process. Consider these methods: Less stuff translates directly to lower overseas shipping expenses and a less complicated move overall. Inventory your belongings Creating a comprehensive inventory of everything you intend to ship is a non-negotiable step that will help you with moving your belongings overseas. This detailed list serves multiple vital purposes:  Create a detailed spreadsheet listing each item, its description, and estimated value. You can also include photo documentation of each of your belongings. Be sure to provide accurate descriptions and realistic estimated values for each item on your inventory list. Research shipping option Once you know your inventory and budget, you can explore the various methods for moving overseas shipping. Research these options early so you can weigh the pros and cons of each and choose what best fits your needs.  Common international shipping services include:  Set a budget Overseas shipping costs can be substantial, so you’ll want to establish a budget early in the planning process. Once you know the financial implications of shipping belongings overseas, you can make informed decisions about what to ship and the level of service you choose.  Factors that significantly influence the cost of shipping belongings overseas include:  Shipping options for moving overseas  Next, let’s dive into exactly how to move your stuff to another country by exploring the different options available. Several options cater to varying needs and budgets, each with its own advantages and disadvantages. Here's what you need to know whether you plan to Full-service international movers Full-service international movers offer the most comprehensive solution for your relocation needs. These companies handle every aspect of the moving process for a streamlined and often less stressful experience. Their services typically include: Container shipping (sea freight) Container shipping via sea freight is a popular and often more economical option for moving belongings overseas, particularly for larger shipments. It typically involves loading your possessions into large shipping containers that are then transported by cargo ships. You generally have two main options: Air freight Air freight offers a significantly faster alternative for shipping belongings overseas compared to sea freight. Your possessions are transported via cargo planes, making it ideal when speed is a priority. While generally more expensive, air freight can be the best solution for certain types of shipments. International courier services International courier services, such as USPS, FedEx, DHL and UPS, provide a convenient option for shipping items overseas, particularly for smaller packages and individual items. These services offer door-to-door delivery and often have efficient tracking systems, making them a reliable choice for specific needs. If you’re opting to DIY For the most budget-conscious and hands-on individuals, a DIY approach to moving overseas shipping involves renting your own shipping container and managing all aspects of the move yourself. This includes packing, loading, arranging for transportation to and from the port and handling customs clearance. How to choose a shipping provider Choosing the right shipping company is a critical decision that can significantly impact the cost and ease of your international relocation. Researching and comparing different providers will help ensure a more stress-free experience. Get multiple quotes To secure the best possible price, get quotes from several different shipping companies—ideally at least three to five. Comparing these estimates will help you gauge the average moving overseas shipping costs and the range of services offered. When requesting quotes, be sure to provide the following information for the most accurate estimates: Read and understand the quote details Once you receive quotes for your move, don’t just focus on the bottom-line price. Review the breakdown of charges so you know exactly what’s included and avoid any unexpected costs. Some common charges you might encounter include: Be sure to ask whether each quote is for door-to-door service (from your current residence to your new one) or port-to-port service (transport only between ports), and ask about any potential hidden fees that may not be explicitly stated. Factors to consider when choosing a shipping provider Several factors beyond cost alone should influence the shipping provider you choose. Evaluate the following to ensure you choose a reliable provider:  Tips for packing your belongings for international shipping Taking the time to pack carefully and strategically can prevent damage during transit and simplify the unpacking process. Navigating customs  One of the most complex aspects of moving overseas is navigating the customs regulations of your destination country. These rules dictate what items you can bring into the country, what duties and taxes you might need to pay, and the necessary documentation required.  You’ll want to thoroughly research the specific customs requirements of the country you’re moving to well in advance of your departure. This may involve checking the country's official customs website or consulting with your chosen shipping provider. Duties and taxes Unlike simply The amount of duties and taxes owed will depend on the destination country's policies and the value and nature of your shipped items. Check the country’s official customs website to determine any duties or taxes you’ll owe.  Essential documentation Successfully clearing customs when you move requires submitting the correct documentation. Gather all necessary paperwork ahead of your shipment's arrival. These could include: Work with your shipping company A reputable shipping company will be valuable in helping you navigate the complex customs procedures. They can guide you through the necessary paperwork and help ensure your shipment complies with the regulations of your destination country. Be sure to provide your shipping company with accurate and truthful information regarding your inventory and personal details to avoid potential delays or penalties with customs. Types of insurance coverage With an international move, there’s always a risk of your belongings being damaged or lost during transit. Protecting your items with adequate insurance coverage is highly recommended for peace of mind. Your options typically include:  Be sure you also know the deductible, which is the amount you will have to pay out-of-pocket before the insurance coverage kicks in. Tracking your shipment  Once your belongings are en route, most overseas shipping companies provide tracking options so you can keep up with their progress. This way, you can monitor your shipment’s journey and get an estimated delivery time frame. There are a few different tracking methods:  Be sure to stay in contact with your shipping company regarding the estimated delivery schedule and any potential updates or changes. What to do once your shipment arrives at the overseas destination Before you sign off on the final delivery of your shipment, carefully inspect your belongings for any signs of damage that could have happened during transit.  If you notice any damage, make detailed notes on the delivery receipt and take clear photos and videos as evidence. Notify the shipping company immediately to begin the claims process if necessary. Your successful moving overseas shipping journey starts with Pacaso Planning your overseas journey involves careful consideration of decluttering, inventorying, budgeting, researching shipping options and navigating customs. Thoroughly researching your options will ensure a smoother transition to your new chapter abroad.  Maybe the dream of an overseas escape appeals to you, but the thought of moving your belongings overseas feels daunting. Consider the ease of

Ready to buy your first or second home in 2025? Since property trends are always in flux, take some time to read through 42 real estate facts and While you’re here, also discover how Current real estate market overview and predictions As 2025 unfolds, Discover more current real estate statistics and predictions: Second home-buying statistics Many home buyers purchase second homes as an escape from their primary residences. Those who have (or aspire to have) second homes care deeply about location, cost and the commute. However, most only visit their secondary property a handful of times each year. Here are some second home statistics to know:  The housing market is witnessing a notable influx of younger buyers, often driven by the need for multi-generational living arrangements. Yet, baby boomers remain a dominant force in home buying. Across the board, however, potential homeowners are grappling with stricter mortgage requirements and the financial strain of existing personal debt. Here’s what the stats show: Realtor statistics Buying a home is a huge deal, and let's be honest, it's rarely straightforward. That's why most people turn to real estate agents to help them through the process, especially when buying in an unfamiliar area, making the leap into second home ownership or handling a big-ticket purchase. Here are some facts about real estate agents that illustrate the experience buyers have with realtors and what they expect from them:  Material facts in real estate statistics Material facts are any aspects of a property that influence a prospective buyer’s decision to buy or not buy — the deal-makers and deal-breakers. These material facts can include surface-level conditions like water damage, historical events or planned neighborhood changes. Or, under-the-surface considerations like insurance rates and HOA fees.  The following are some factors home buyers are considering, and you should too:  Wealth building through real estate investments statistics As financial futures feel increasingly uncertain, many are turning to Real estate financing statistics Unless you have plenty of cash to cover the cost of your new home, a home loan or another payment source will be a necessary step on your journey to home ownership. The following facts about real estate explore Real estate tax statistics Many new homeowners are surprised to learn that they generally can't Real estate fun facts Buying and selling homes can be exciting — and a headache. However, the world of real estate is also built on unique buildings and interesting facts. For example, these days, you can buy property in the real world or online. And once upon a time, you could even order your home from a catalog.  Learn about more fun real estate facts. Enjoy a vacation home — commitment-free Home prices are growing at a slower pace now, and upcoming markets have a lot of potential for appreciation, so now could be the perfect time to If the real estate facts we shared here aren’t enough to give you peace of mind, consider

The Rise of Sustainable Luxury in Real Estate In the world of luxury real estate, a new trend is emerging that marries opulence with environmental responsibility. High-net-worth individuals are increasingly seeking second homes that not only offer lavish amenities but also embrace sustainable practices. From the rolling Eco-Friendly Innovations in Sonoma Sonoma County is a beacon of sustainable luxury, where eco-conscious homes blend seamlessly with the natural beauty of Discover the sustainable charm of Sustainable Living in Santa Barbara & Montecito In Santa Barbara and Montecito, luxury homes are designed to harmonize with the coastal environment. These properties often feature solar panels, smart home technology, and native landscaping. The integration of sustainable materials and energy-efficient systems not only reduces environmental impact but also enhances the home's aesthetic appeal. Eco-Conscious Design in Jackson Hole Jackson Hole is a leader in eco-friendly architecture, where homes are crafted to blend with the breathtaking natural surroundings. Sustainable features such as geothermal heating, reclaimed wood, and rainwater harvesting are common. These innovations not only promote environmental stewardship but also offer long-term cost savings. Experience the serene beauty of Urban Sustainability in London London's luxury real estate market is embracing sustainability with features like solar panels, Explore the elegance of the Eco-Luxury in Bend, Oregon Bend, Oregon, is a haven for eco-luxury living, where homes are designed to minimize environmental impact while maximizing comfort. Features like high-performance insulation, solar panels, and water-saving fixtures are standard in these properties, reflecting a commitment to sustainability. Immerse yourself in the natural beauty of The Role of Co-Ownership in Sustainable Living Co-ownership models, like those offered by Pacaso, are making sustainable luxury more accessible. By sharing ownership, multiple parties can enjoy the benefits of a high-end, eco-friendly home while reducing the overall environmental footprint. This innovative approach aligns with the growing demand for sustainable living solutions. Conclusion: Embrace Sustainable Luxury Sustainable luxury homes are not just a trend; they represent a fundamental shift in how premium real estate is defined. By integrating eco-friendly features and innovative co-ownership models, these properties offer a unique blend of opulence and environmental responsibility. Explore the possibilities with Pacaso and discover how you can own a piece of sustainable luxury in top destinations like

It’s no secret that home prices are substantial. The average sales price for new houses sold in February 2025 was Other factors, like initial costs, interest rates, insurance costs, property taxes, maintenance responsibilities and the ever-changing economic landscape, can also shape how people choose to live and if they decide to invest in real estate.  Let’s go over the pros and cons to help you decide whether it's better to rent or buy a home. Pros and cons of owning a home Owning a home provides more stability and long-term equity but comes with varying costs, especially with a variable-rate mortgage. Here’s a list of pros and cons when purchasing a home: Pros Owning a home can build equity over time, but it’s more than that for most. Part of this ownership comes back to making the home your own. Home improvements are a boon to homeowners who want to increase the value of a home or truly make it theirs. However, depending on the Equity is still a vital tool for homeowners. Homeowners can use equity to turn a profit on the home later, or they may also borrow against it to pay for expenses like medical bills, college tuition and home improvements.   There’s also the stability. Unless you pay cash, fixed-rate mortgages enable flat monthly payment amounts over the life of the loan, except for insurance premiums and tax fluctuations over time. Even so, these can be relatively minor fluctuations you can plan for. Cons Homeownership is generally more expensive than renting because there are more costs to consider, such as property taxes, higher insurance costs, utility costs and maintenance. Many of these can also fluctuate depending on varying factors, such as insurance rates in your area. Buying, setting up a mortgage and scheduling necessary inspections could also be time-consuming. If you need the home now, waiting for these processes to complete can be frustrating, sometimes being pushed by several months, depending on scheduling limitations.  Homeowners might also see their creative vision limited by a Homeowners Association (HOA). While HOAs can sometimes benefit you through snow removal, lawn maintenance, and other services, others can restrict housing colors or your plans to expand your home. Pros and cons of renting a home Renting a home saves time from the purchasing process and provides more flexibility while trading in the benefits of ownership, such as tax breaks or stable payments. Here’s a list of pros and cons when renting your home: Pros Renting works well for those who value flexibility, convenience, and savings. Median rent was around Renters are also not responsible for maintaining as much of their unit, enabling renters to save what they would spend on maintenance costs for a Cons A renter’s main inconvenience is the lack of control. There’s no home customization, you might be subject to Renters may also have their home sold while they live there, meaning they’ll have to move out at the end of a lease term. Some lease contracts even have clauses forcing the renters to move out within 30 days if the property is sold. It’s vital to read your contracts fully, regardless of renting or buying. While home ownership is often seen as a goal to strive for, renting vs. buying a home may make more financial sense in certain stages of life.  Let’s look at the differences between buying and renting. Buying vs. renting: 5 differences to know:  Your costs and lifestyle needs will affect whether renting or buying a home is better. Here’s a table breaking down some major differences. 1. Monthly housing payment Homeowners are responsible for a wide range of costs taken by a mortgage company, often through an escrow account. Your mortgage company uses the escrow account to pay property taxes and homeowners insurance. You might also need to pay mortgage insurance premiums if you purchase your home with a down payment of less than 20 percent. Utilities are billed separately.  If you rent a home, you will pay a set amount for your lease, which can change during renewals. You also may be responsible for the utility bills, which could be part of your rent or separate, depending on your rental agreement. Many people also choose to get renters insurance; some leases even require it.  Whether you’ll pay more in your monthly housing payment as a renter or a homeowner depends on many factors, including market conditions, interest rates, and the size of your down payment. Knowing these factors before buying a home will help you understand if you can afford it.  Consider second home co-ownership with 2. Insurance  Homeowners often pay more than renters for insurance. The average cost for renters insurance is around Renters insurance can provide liability protection for at-fault incidents for things you don’t own, often including damages to the residence. It can also protect your belongings in case of flood, fire or theft. Some homeowners require adequate liability coverage to protect their homes in the event of a major incident.  Meanwhile, homeowners are generally required to obtain insurance to qualify for financing. Like renters insurance, homeowners insurance covers liability, such as people slipping in your home, and coverage for your belongings. Where it differs is that the coverage for the house itself must be broken down by type, such as coverage for other structures, coverage for wind and hail and coverage for the dwelling itself. This complexity makes homeowners coverage much more expensive. 3. Home equity Rent payments contribute solely to the landlord's income and do not provide renters with any property ownership stake or investment value, so tenants do not build equity. Instead, that equity goes to the rental property owner. In contrast, homeowners make mortgage payments, build equity in their property, and may benefit from property value appreciation. This makes buying a primary home a long-term investment with potential financial gains. Additionally, home equity can allow homeowners to access funds through home equity loans and lines of credit.  4. Property taxes Homeowners are required to pay annual property taxes, while renters do not. Property taxes vary by state and county, with Although homeowners must pay annual property taxes and mortgage interest, tax deductions can lead to significant tax savings. Even when selling a home, homeowners may qualify for capital gains tax exclusions that further reduce their tax burden. Homeowners can also take advantage of different tax breaks for Tenants who rent typically do not receive direct tax benefits related to their rental payments, and property taxes may be fixed into their lease agreements. You may qualify for deductions if you use the space for something tax-deductible, such as working from home. 5. Lifestyle Renting offers greater flexibility and mobility, making it an appealing choice for individuals who prioritize a transient lifestyle. Renters can easily relocate for job opportunities or personal preferences without the burden of selling a property. Renting also eliminates the responsibility of property maintenance and repairs, providing a more carefree living experience.  On the other hand, buying a home suits those seeking stability and ownership. Ownership allows people to customize their living space and establish long-term relationships within their community. Although homeowners have more control over their living environment, they are responsible for all property maintenance and upkeep. The cost of buying vs. renting a home [$300,000 home example] Renting generally involves lower upfront costs, as renters typically only pay a security deposit and first month's rent, while homebuyers are responsible for repairs. However, renting can be more expensive than buying in the long term, as homeowners build equity, benefit from potential property and receive more tax benefits. Here is a breakdown of the cost expectations of renting vs. buying a $300,000 home. Items like taxes may vary depending on your state or county. Simply put, renting is better if you prefer convenience, while buying is better if you prefer stability. So, if uncertainty and commitment are the only things holding you back, wouldn’t it be great if you could try it out before committing to a 30-year mortgage?  Thankfully, you can do that with

Dreaming of Let’s explore the seven steps of how to purchase a second home: 1. Determine your budget Buying a second home is a significant Determining your budget for a second home involves assessing your current and future finances. Consider income, expenses and additional costs like taxes and maintenance, especially if you will be assuming a second mortgage. A Evaluate financing options and consult a financial advisor for insights into tax implications and investment alignment. This thorough analysis ensures that your second home purchase aligns with your financial goals and lifestyle. Second home expenses In addition to the purchase price, be sure to factor in these expenses when budgeting for a second home: Although second homes come with their fair share of added expenses, they also offer a few tax deductions that make your second house dreams less costly. As you’re crunching the numbers, remember your second home can also be a source of rental income and These are great ways to make owning a second home more feasible. However, 2. Consider your financing options Lenders often see second homes as being at higher risk for loan repayment. For this reason, Here are some things to consider when financing a second home: It’s important to note that classifying your second home as an Buying a second home doesn’t have to be a solo endeavor. 3. Compare lenders When comparing lenders for a second home, it's essential to conduct a thorough evaluation to secure the best financing option tailored to your specific needs. Consider the following factors and use them as a basis for comparison: By comparing these factors among different lenders, you can make an informed decision that aligns with your financial goals and secures the most favorable mortgage terms. 4. Get pre-approved Getting pre-approved for a second home is a simple process, with many lenders allowing you to apply online. They look at your financial history, including your current income and debts, to give a rough number regarding what you can afford. At this stage, Having a pre-approval letter from a lender can give you a leg up when it’s time to make an offer on your dream second home. Be aware, however, that since some lenders may see 5. Find a location and a local agent Once you decide how to use your second home, you can hone in on the perfect location. Going with your favorite Ask yourself: Confirming your reason for owning a second home can help you decide on the perfect destination for your new vacation spot. Choosing the right agent Finding a knowledgeable agent in your target market can significantly decrease your workload in your second home search. You can use their local knowledge to help you with logistics and make an informed decision. Research local agents online, cross-reference reviews and ask for recommendations from your friends and family when possible. According to Redfin, the going rate of a real estate agent is about 6. Make an offer Purchasing a second house will be a familiar process if you’re already a homeowner: You make an offer, negotiate, come to an agreement and prepare for closing. Prior to closing, you will: Once your offer is accepted, it’s time to begin the closing process for your new home. 7. Begin closing After the seller accepts your offer, the second home closing process begins. This process involves several crucial steps: Although closing on your second home may appear overwhelming, a smooth closing is key to turning your house purchase into a dreamy second home getaway.  When considering purchasing a second home, you'll want to evaluate your finances, lifestyle, and market conditions to determine whether it's the right time to purchase—but those factors are just the tip of the iceberg. Here are some of our team's top considerations for those considering a second place of residence.  Assess your current financial situation to see if you can comfortably afford a second home down payment and the potential higher interest rates that come with second mortgages. Ensure that this added debt won't negatively impact your primary financial responsibilities, such as your emergency fund and retirement savings. If additional debt strains your financial resources, it may not be quite the right time to buy. Taking on a second mortgage without the capacity to do so could lead to financial instability and long-term financial hardship, making it hard to relax and enjoy that The ideal second home aligns seamlessly with your lifestyle. Prioritize locations that support your hobbies and desired activities, guaranteeing a frequent and enjoyable retreat. If you like to ski, for example, a When deciding on the main goal for your second home, it's crucial to determine if you're primarily interested in generating rental income, building long-term investment appreciation, or creating a personal retreat. Each of these objectives will significantly affect your approach to buying, managing, financing, and handling taxes for the property. Owning a second home comes with significant responsibilities. Are you prepared to manage the upkeep of two properties? This includes regular maintenance, potential repairs and the time and financial commitment of traveling between both homes. If not, are you willing and able to hire a property management company or other professionals to handle these tasks?  Remember that delegating these responsibilities will add to the overall cost of owning a second home. Finally, when looking to take a big step forward in your second home journey, you'll want to look at the Now that you know how to buy a second home, it’s time to find the second house of your dreams. If turn-key luxury is what you’re after, consider buying a second home with Pacaso. Each of our co-owned homes is part of an LLC, is fully decorated and furnished, and comes equipped with a dedicated property manager to make your second home ownership journey as stress-free as possible. We even Check out our

Join us for a behind-the-scenes look at what it’s really like to buy a Pacaso. Whether you’re just starting to explore co-ownership or already considering a home, this session is designed to give you clarity and confidence in the process. You’ll hear directly from our expert team — Ramon, Phoebe, and Lana — as they walk through every step of the seamless Pacaso ownership journey. From offer acceptance to move-in day, you'll learn how Pacaso handles all the details, including legal paperwork and personalized support, so you can focus on the joy of owning a second home. We’ll also cover what happens after closing, including our white-glove services and long-term management, plus answer frequently asked questions.

Exploring the appeal of owning multiple homes across the globe Owning multiple homes has evolved into more than a symbol of success — it is a lifestyle strategy that prioritizes choice, flexibility, and immersion in the world’s most sought-after destinations. For many, curating a portfolio of second homes in iconic cities means enjoying a new standard of living, where each address offers its own rhythm, amenities, and cultural vibrancy. This lifestyle provides year-round access to curated experiences, from Key lifestyle benefits of a global portfolio A thoughtfully curated collection of luxury homes allows you to seamlessly transition between vibrant metropolises and tranquil getaways, all while enjoying the comforts and distinctiveness of each location. Whether you’re drawn to the cultural allure of Paris, the outdoor recreation of Aspen, or the classic elegance of London, owning multiple homes means each season offers a new adventure. The experience goes beyond the walls: it’s about spontaneous weekends in the Alps, private dinners overlooking the Seine, and sunrises on Florida’s coastline. Co-ownership enhances this flexibility, empowering you to enjoy prime residences without the constraints of full ownership. The Pacaso approach transforms second home ownership from a distant aspiration to a tangible reality for many seeking this dynamic, travel-rich lifestyle. Smart financial strategies for owning multiple homes Luxury real estate market trends in 2025 Iconic homes in top destinations A truly global portfolio is defined by distinctive homes that reflect local character and elevate day-to-day living. For example, Paris is celebrated for refined apartments with historic details and prime locations, London for its blend of tradition and contemporary design, Aspen for its alpine elegance, and Palm Beach for classic coastal sophistication. Each residence becomes a personal touchstone in a collection that is both a gateway and an investment, offering you the flexibility to enjoy art openings, seasonal festivals, and exclusive events as a local. Pacaso’s curated selection of homes across these cities sets a new standard for modern global living, giving you the opportunity to experience — and own — a piece of the world’s finest neighborhoods. Among these, Ownership in iconic alpine locales is just as meaningful. The elevated outdoor lifestyle of mountain markets attracts those who prize adventure and privacy, but also want a well-connected hub for family and friends. For those drawn to ocean breezes and contemporary living, Palm Beach and South Florida offer timeless appeal. Waterfront estates balance sophisticated design with proximity to vibrant culture and leisure. Tips for building your own second home collection Start your global journey with Pacaso Owning multiple homes across continents brings both lifestyle rewards and financial sophistication. Whether you are considering your first international addition or expanding your existing portfolio, Pacaso offers a streamlined path to ownership in world-class destinations. View homes in vibrant cities like

Say you've been planning the ultimate luxury vacation for a couple of years. You've got your list of dream destinations, top-notch resorts, and must-try experiences all lined up. But just as you're about to book, you discover some places have become overcrowded, while hidden gems have emerged elsewhere. Suddenly, your itinerary needs a revamp.  The luxury real estate market isn't much different. Economic shifts, evolving consumer tastes, and technological innovations continually reshape the landscape. In this guide, we’ll walk you through the top luxury real estate trends of 2025 so you can create a strategy that leads to 1. Smaller homes are becoming more luxurious Smaller homes continue to gain popularity among luxury buyers in 2025, and it's not just about saving money — it's a lifestyle choice. Recent data from the Affluent buyers are prioritizing convenience and financial flexibility, seeking homes that require less maintenance without sacrificing those high-end finishes we all love. Many buyers are choosing smaller homes because they're easier to purchase with cash, avoiding mortgage debt and those pesky rising interest rates. Why smaller luxury homes work: 2. The luxury market is stabilizing as inventory rises and price growth cools After years of soaring prices and fierce competition, the luxury housing market is shifting toward a more balanced state in 2025. The extreme ups and downs we've seen in previous years are leveling off as more high-end properties become available. This increase in supply is giving buyers more options and cooling down the frenzy that once drove those intense bidding wars. In some areas, luxury home prices are even seeing slight declines — a welcome change for buyers. While demand for luxury properties isn't disappearing, the days of skyrocketing prices and bare-bones inventory seem to be behind us, pointing to more stable luxury real estate trends in the coming years. 3. The luxury real estate market is becoming more globalized Market trends in “Texas is seeing steady growth, especially in cities that offer business opportunities without the tax burdens of other states. At the same time, international luxury markets are evolving. A study by 4. Luxury price growth is slowing while select markets experience corrections Luxury home prices in the U.S. continue to rise, but the pace of growth is slowing. According to Redfin, the Some markets are still seeing impressive gains, such as: However, signs of correction are emerging in select cities, like:  This suggests a potential shift in the New listings in the luxury market have surged in several key areas, giving buyers more choices and taking the pressure off prices. Providence, RI (31.5%), Miami (28.1%) and Tampa, FL (27.6%) saw the biggest jumps in new luxury home listings.  Meanwhile, the pace of sales varies dramatically — on average, luxury homes in Seattle sold in just six days, while Miami's high-end properties lingered for 114 days. These luxury real estate market trends highlight how the high-end housing sector is evolving, with some cities still seeing rapid growth while others are cooling down or making slight adjustments. 5. Cash is king, but financing is gaining traction in the luxury market While cash has traditionally dominated luxury real estate transactions, financing is making a comeback as interest rates begin to descend.  Though interest rates remain higher than pre-pandemic levels, their gradual decline opens financing options for luxury buyers. Many wealthy individuals still prefer cash purchases to avoid borrowing costs, but others are dipping their toes back into the mortgage market as rates become more attractive. Beyond traditional mortgages, savvy buyers are getting creative with margin loans, stock portfolio loans and private banking credit lines to fund their purchases. Cash remains a powerful advantage in competitive markets where bidding wars still happen.  However, as borrowing costs continue to fall, experts predict more luxury buyers will incorporate financing into their strategies. This shift reflects a broader normalization in the 6. Luxury buyers are adapting to evolving interest rates With This hesitation creates a more balanced market, forcing sellers to adjust their expectations. As overpriced homes sit longer, buyers are holding out for better deals, potentially leading to win-win negotiations for both parties. Despite the challenging economic environment, cash-rich buyers remain active in the Dahlia Fox, a real estate agent with The luxury real estate market in 2025 is likely to see more price adjustments as everyone adapts to the new financial reality. 7. Luxury second-home market and co-ownership is booming Even with economic challenges, the demand for luxury Real estate expert and Platforms like Pacaso, where families can purchase fractional ownership of a luxury home with maintenance handled, are gaining popularity. This trend in the luxury home market makes owning that 8. Investors are expanding their portfolios with high-end real estate Despite economic shifts, luxury real estate remains a stable and attractive asset. Investors are particularly eyeing Thomas Franklin, Founder and CEO at This shift toward managed asset pools lets investors spread their capital across multiple luxury properties, enjoying both flexibility and access to global markets while minimizing risk — a trend that's reshaping luxury real estate market trends in 2025. 9. Smart homes are becoming essential rather than a luxury feature According to Rachel Stringer, "Technology is built into every part of high-end real estate now. Homes that aren't equipped with automation, security and seamless integration of smart features feel outdated before they even hit the market."  With AI, IoT and big data working together, these smart systems are completely transforming how luxury homes operate, delivering next-level comfort and efficiency that today's discerning buyers demand. These luxury home trends are rapidly becoming the new standard rather than exceptional features. 10. Luxury buyers are prioritizing sustainability Sustainability is becoming a top priority for luxury buyers in 2025, with a growing emphasis on energy efficiency, eco-friendly materials and green spaces. As climate awareness rises and government regulations tighten, we're seeing a notable shift toward sustainable Rachel Stringer puts it perfectly: "The conversation about sustainability has also shifted. It's not about marketing a home as eco-friendly for show — it's about efficiency. Solar panels, energy storage, water recycling and passive design are becoming standard because they lower long-term costs and increase self-sufficiency."  Investing in green properties with 11. Luxury home buyers are prioritizing resiliency features Luxury home buyers are increasingly looking for properties that can weather natural disasters — literally. In regions prone to hurricanes, wildfires and flooding — like California, New Orleans and Florida — buyers want more than just beautiful homes. They want properties with features that ensure their investments remain safe and functional no matter what Mother Nature throws their way. These features include: Nathan Mathews, CEO of 12. Gen-X and Millennials will influence the market Millennials and Gen-Xers are reshaping the luxury real estate market. Affluent millennials gravitate toward homes featuring cutting-edge technology, sustainability and energy efficiency, viewing real estate as a lifestyle statement and a financial investment. Their preference for urban properties or resort homes with income potential drives demand for smart, sustainable luxury properties across the market. Gen X buyers, now in their prime earning years, are focusing on long-term asset diversification. With wealth inherited from baby boomers, they're seeking homes with premium amenities, enduring value and stability for future generations. As  Rachel Stringer notes, "Millennials and Gen X prioritize functionality, privacy and convenience. They want spaces designed for how they actually live — integrated wellness features, easy-to-maintain outdoor areas and turnkey properties." These generations are significantly influencing luxury real estate trends with their distinct preferences and priorities. Luxury real estate made easy with Pacaso The luxury real estate market is always evolving, and 2025 promises to bring new opportunities and challenges for prospective buyers. Whether you're looking for a primary residence or a To stay ahead of the latest luxury real estate market trends and discover exclusive high-end listings, Pacaso can help you cross the finish line on your vacation home ownership journey (or even help you figure out how to