Housing market

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

I’m Austin, CEO and co-founder of Pacaso. Spring often signals a fresh start in the housing market, and 2025 is no exception. This year, we’re seeing a gradual increase in both inventory and demand. While the year began with lower sales volume, homebuyer demand is gaining traction, and mortgage rates remain below 7%—a welcome trend for buyers. As market conditions evolve, we’ll continue to monitor trends and provide insights. If you have questions about a specific market or are interested in exploring co-ownership opportunities, don’t hesitate to reach out. Some things we’re seeing shaping up this season: While home sales fell 4.9% in January—continuing a broader market slowdown, according to According to the Moreover, Earlier this month, mortgage rates declined for the sixth consecutive week, with the 30-year fixed rate dropping to 6.67%—the lowest level since October 2024. As of Tuesday, March 25, 2025, the current average interest rate for a Housing inventory is on the rise, giving buyers more options in many markets. According to However, inventory remains 23.1% below February 2019 levels, meaning buyers in certain regions—particularly parts of the Midwest and Northeast—are still facing tight resale markets with limited options. As we move further into spring, these market dynamics will continue to evolve. Whether you’re considering co-ownership or exploring new real estate opportunities, we’re here to help you navigate the trends. Our team took a deep dive into the latest housing trends across North and South Carolina, and one key insight stood out: North Carolina is leading the way in vacation homebuyer demand, outpacing South Carolina across several key metrics. From the Blue Ridge Mountains to the Outer Banks, buyers are drawn to the state’s natural beauty, accessibility, and year-round lifestyle appeal. Explore the full report to see what’s driving the shift—and what it means for the future of second home ownership in the Carolinas. See the report

In recent years, both North Carolina and South Carolina have emerged as prime destinations for luxury second-home buyers, offering a mix of coastal retreats, mountain escapes, and charming small towns. But which state is seeing the biggest surge in vacation home investments? Top Carolina vacation home markets to watch To identify the trending vacation home markets in both North and South Carolina, Pacaso analyzed second home mortgage rate lock data alongside growth trends in pricing and transaction volume. These 20 counties stand out for their significant increases in second home activity and proportion of second homes to primary homes. North Carolina has topped the charts with 16 out of the top 20 counties in the Carolinas attracting vacationers. Compared to South Carolina’s “southern charm,” North Carolina offers a variety of vacation destinations. From the shores of the Outer Banks in Currituck County and Bald Head Island in Brunswick County to the mountains of Asheville in Buncombe County and popular ski areas in Haywood County, there is something for everyone.  Though ocean retreats remain popular along the Carolina coasts, North Carolina’s rural counties dominate the charts, finding that vacationers are seeking more than just a waterfront view but charming towns, mountainscapes and expansive vineyards, like Hendersonville in Henderson County, the main hub for the wine region with several wineries and vineyards located nearby. “Today’s second homebuyers are looking for more than just a beach—they want natural beauty and year-round appeal. The Carolinas deliver all of that, often at a more accessible price point than other markets,” said Austin Allison, CEO and co-founder of Pacaso.“For many buyers—especially those in the Southeast—these destinations provide a lifestyle upgrade that feels within reach." The Carolinas continue to attract vacation home buyers, with some of the more “legacy” coastal markets leading the way. Currituck County, NC home to the Outer Banks, remains a top destination, offering pristine beaches and exclusive waterfront properties, with luxury buyers investing in homes averaging over $1 million. With more than 33% of the second home share, Horry County, SC—home to Myrtle Beach—attracts a wide range of buyers with its more affordable inventory. In 2024, the average second home price is around $400,000. South Carolina gems like Beaufort County—home to “This data comes as no surprise to us at Pacaso,” said CEO Austin Allison. “Hilton Head was the first East Coast vacation home market where we introduced co-ownership. Our owners and buyers also adore the Charleston barrier islands, and in response to demand, we’ve just introduced another stunning home on Kiawah Island—Blue Heron.” Mountain communities in the Carolinas continue to attract vacation home buyers. Despite recent catastrophic weather challenges to the beloved communities of the southern Appalachian Mountains, these markets have shown resilience, with steady year-over-year growth from 2023 to 2024. In Buncombe County, Asheville remains a sought-after destination, offering a vibrant cultural scene, breathtaking mountain views, and a strong vacation home market. Just west of Asheville, Haywood County—where second homes make up 23.6% of the market—is emerging as a top choice for buyers seeking affordability, stunning scenery, and proximity to the Great Smoky Mountains National Park. Similarly, Madison County continues to attract buyers year over year and has been referred to as “Asheville's backyard”—and it’s easy to see why. Located just 20 minutes north of Asheville, Madison County is steeped in natural beauty, home to the famed Appalachian Trail, Pisgah National Forest, the French Broad River, and the renowned Hot Springs. North Carolina’s quieter coastal regions are seeing increased interest from  vacation home buyers, with hidden gems gaining traction alongside more well-known destinations. Brunswick County, positioned between Wilmington and Myrtle Beach, is drawing buyers to its charming beach towns like Oak Island and Sunset Beach. Pamlico County, often known for possibly having more boats than people, appeals to those seeking tranquil waterfront living away from the crowds.  Pacaso identified the top North Carolina and South Carolina home markets by selecting 20 counties with the highest index scores, determined by analyzing key metrics such as the proportion of second homes to primary homes and growth trends in second home rate locks and prices from 2023 to 2024. Counties with fewer than 50 second home rate locks or where second homes accounted for less than 5% of transactions were excluded. Markets were further filtered to include only areas with positive price growth during this period. Weighted criteria emphasize popularity, demand, and recent growth, highlighting dynamic and high-value second home destinations. The markets are ranked based on the largest proportion of second homes to primary homes.

I’m Austin,  CEO and Co-Founder of As 2024 came to a close, we watched changes that could impact both buyers and sellers. The year ended with home sales up, mortgage rates still elevated, and price growth slowing, leaving some optimism for the year ahead. Here’s a closer look at the latest trends as we close out the year and what’s ahead in 2025. 2024 in review  1. Home sales surge at the end of ‘24 November saw a 6.1% year-over-year increase in sales, marking the largest gain since mid-2021. U.S. existing-home sales also rose 4.8% from the previous month, reaching a seasonally adjusted annual rate of 4.15 million—the highest level since March, according to the 2. Rate rollercoaster While the Federal Reserve has For most of 2024, rates were lower than the previous year, but by the end of December, they were up 21 basis points annually. The average rate for a 30-year fixed mortgage with conforming loan balances (up to $766,550) edged up from 6.89% to 6.97%, as analyzed by 3. Home price growth slow Nationwide, home prices grew by 3.6% in October compared to the previous year, down from 3.9% in September. This marked the seventh consecutive month of slowing annual gains, as reported by the 2025 Predictions The outlook for 2025 is cautiously optimistic, according to experts from NAR, Zillow, Redfin, and Realtor.com.  When it comes to mortgage rates, we might see a slight dip, but they’re likely to stay above 6%, keeping things challenging—but improving—for buyers. Inventory is also expected to improve. In fact, We'll continue to check in with updates, and encourage you to contact us with any questions about a market of interest.

This year has been incredible for Pacaso — 2024 brought major growth and exciting momentum, thanks to the amazing support from our community. Recently, we extended an exclusive opportunity to our community to join our mission of making vacation homes more accessible for more people through our growth round. Because of strong demand and substantial growth in the first half of the year, our share price will increase after For more information on Pacaso and how you can join the journey, please visit

Recent interest rate cuts by the Federal Reserve have spurred enthusiasm in the real estate market because even small changes can have a significant impact on real estate purchasing power.  The Fed cut rates .5% in September and .25% in November, lowering its benchmark borrowing rate by three quarters of a point in 2024. While the Federal Reserve does not directly set mortgage rates, the changes in its benchmark rate does influence real estate borrowing. With this lower benchmark target, first and second home buyers should have more purchasing power and the ability to capitalize on real estate purchases. For Pacaso clients, who purchase shares of a luxury vacation home through our co-ownership model, lower borrowing rates translate directly to more affordability, better financing options and a generally enhanced ownership experience. In general, a lower Federal Reserve benchmark rate means lower borrowing costs for real estate buyers. Pacaso’s model already excels at supercharging buying power, making high-end properties accessible by splitting the purchase price and ongoing costs among multiple co-owners.  The recent cuts amplify this affordability. For example, rather than buy 100% of a $10 million Aspen home that you might only use 1-2 months a year, Pacaso enables you to purchase ⅛ to ½ of that same home, for a fraction of the price. You get the same enjoyment of the home, without the large price tag, and Pacaso tackles all of the headaches associated with owning the home.  Additionally, buyers can finance their purchase. Lower borrowing rates lead to smaller monthly payments. And with direct financing, Pacaso is already offering great financing options. With lower rates, your potential savings extend over the life of the loan, translating to more luxury living for a smaller price tag.  Pacaso gives buyers Pacaso also offers financing directly in order to make the purchase, and your ownership, as seamless as possible. You may be able to find a loan with your bank to purchase a second home, but the rates you find through Pacaso will likely be even more competitive and affordable than a traditional loan.  This is in large part due to our lending partnerships, and our growing experience in financing hundreds of vacation home purchases. Plus, Pacaso closings can happen in as little as one day so you can start enjoying vacation home ownership right away. One of the biggest advantages of decreased interest rates is the reduction in monthly payments. This can make owning a share of a luxury property more cost-effective than ever before. Lower monthly expenses allow buyers to allocate more resources to other important priorities while still enjoying the benefits of ownership.  For example, let’s take a $500,000, 7-year loan. At 10%, the total interest for this simple loan would amount to about $197,000. At 9%, even just 1 percentage point lower, the same borrower would save about $22,000, a roughly 11% savings, over the course of the loan. This shows how even small changes in borrowing rates significantly impact the overall price of a loan.  Timing of these cuts presents an opportunity for those looking to enrich their lives. In a recent The value of spending time with family and friends in combination with dollar maximizing strategies position Pacaso to serve you and your goals. From reduced monthly costs to enhanced financing, your buying power is truly amplified, and the benefits are clear. Pacaso’s

Pacaso's H1 2024 Earnings Call will provide an in-depth look at the company's financial performance and investment opportunities. Join Co-Founder and CEO Austin Allison, alongside CFO Alvaro Cortes. During this session, they’ll unveil key H1 performance metrics, share insights into Pacaso’s plans for growth, and explain how you can participate in our mission to make second home ownership more accessible. For more information on Pacaso and how you can join the journey, please visit

On Presidents Day, many across the U.S. celebrate the nation’s past, present and future leaders with a restful day off. It's no secret that our commanders-in-chief, too, enjoy their own vacation time. From small towns in Texas to multi-generational coastal compounds, presidents across history have retreated to unique destinations for some R&R — many spending their time in a second home. In honor of the holiday, we analyzed seven second home destinations where U.S. presidents vacationed before, during, and after their time in office. Since history shows that So, which president chose the getaway spot with the greatest price appreciation? Hint: He was the 40th president of the United States. Key takeaways 1. Goleta, California (Ronald Reagan) Six presidential getaway destinations saw more than 17% growth in median second home price from last year — with the biggest growth being 20.55% in Santa Barbara County. The average luxury home value in this California county almost doubled from $776,767 to $1,247,645 over a five year period. Santa Barbara County is not only home to the popular cities of Santa Barbara and Montecito, but also the chosen getaway destination for Los Angeles city dwellers and, previously, the Reagans. The famed Rancho del Cielo where President Ronald Reagan retreated with his family, also known as the “Western White House” is located in Goleta, California. The presidential ranch is situated atop the Santa Ynez Mountain overlooking "The Good Land," a breathtaking 10-mile stretch of beautiful coastal and agricultural land. 2. Hyannis, Massachusetts (John F. Kennedy) Barnstable County, Massachusetts recorded the next largest growth in second home price year over year with 19.73% increase. Barnstable County is home to the popular coastal community of Cape Cod and its associated islands. The picturesque seaside town has a rich history with the Kennedy family, which began in 1928 when President John F. Kennedy’s parents purchased a vacation home in Hyannis Port. JFK, his brother Ted and his sister Eunice later purchased the neighboring homes to bring to life the Kennedy Compound, a  three-house, six-acre waterfront property along Nantucket Sound. "With serene beaches, quaint villages, colorful seafood shacks and lighthouses, the Cape embodies the best of New England charm and has long been a popular destination for second home owners and seasonal travelers," said Pacaso Co-Founder and CEO Austin Allison. 3. Rancho Mirage, California (Henry Ford) Coming in third is Riverside County, California, where the 38th President Gerald Ford retreated at one time. The county saw a 19.61% price appreciation in its luxury home prices from 2021 to 2022. Most interesting is chance in price appreciation prior, during and following the pandemic — second home prices were up 4.24% year over year in 2020 but skyrocketed to a 20.66% growth in 2021, showcasing the demand surge for second homes after the onset of the pandemic. Nestled in Rancho Mirage between Palm Springs and Palm Desert, Ford’s home sat on the 13th hole of the iconic Thunderbird Country Club. The popular desert city is home nearly 300 days of California sun and great golf, and has long been a popular getaway for Hollywood and influential celebrities alike including Frank Sinatra, Dean Martin, Bing Crosby, Lucille Ball, and of course, Gerald and Betty Ford. 4. Crawford, Texas (George W. Bush) Perhaps the smallest town on this list of presidential second homes is Crawford, Texas in McClennan County, and the home away from home of Laura and George W. Bush. While Crawford’s population is less than 1,000 people strong, the central Texas county saw a 18.98% increase in the value of luxury homes from 2021 to 2022, perhaps due to the charming county seat of Waco. Waco is approximately 35 miles east of the "Bush Ranch" and offers plenty for locals and visitors alike to do and explore, from Baylor University and Cameron Park to delicious barbecue, unique boutiques and more. The stars of popular home show "Fixer Upper" and owners of Magnolia, Chip and Joanna Gaines call Waco home and have also attracted fans to the central Lone Star state town who visit the Magnolia Market & Silos. The luxury home price in McClennan County is the lowest on the list with a $512,931 average. 5. Rehoboth, Delaware (Joe Biden) Sussex County, Delaware saw an 18.27% year-pver-year increase in the value of luxury homes year over year. Sussex County is home to numerous seaside resorts and popular beach towns such as Bethany Beach, Dewey Beach, Fenwick Island, Lewes, and Rehoboth Beach.  Properly nicknamed “The Nation’s Summer Capital” due to its popularity amongst politicians and its proximity to Washington, D.C., Rehoboth is the current escape for POTUS Joe Biden and Dr. Jill Biden. The Delaware-native had been vacationing to Rehoboth for decades prior to purchasing his second home in 2017.  During Biden’s presidency, he and the First Lady have been seen in perusing Browseabout Books, grabbing an ice cream scoop at Double Dippers and strolling on Gordons Pond Trail, amongst others. 6. Kennebunkport, Maine ( The value of luxury homes in Maine's York County increased 17.16% from 2021 to 2022. The southern Maine county is home to the charming coastal city of Kennebunkport, widely known as one of New England's most popular tourist destinations.  President George H. W. Bush, the 41st President of the United States, inherited a "Summer White House" retreat in the town of Kennebunkport, rightfully named "Walker's Point Estate." Similar to JFK’s Massachusetts compound, Walker’s Point Estate consists of three family-owned properties and has long served as a multi-generational getaway destination for the Bush family. 7. Edgartown, Massachusetts ( Dukes County, Massachusetts saw an 11.11% increase in the value of luxury homes from 2021 to 2022. The county consists of the island of Martha's Vineyard, the Elizabeth Islands, the island of Nomans Land and other islets. While the entire county only has a population of about 20,600, the largest island in the county is Martha’s Vineyard, which has long been a popular vacation home destination. The island is famous for its miles of public beaches, quaint shops and restaurants.  In 2019, Barack and Michelle Obama bought a slice of Martha’s Vineyard by way of a 29-acre, seven-bedroom and eight-and-a-half-bath estate for $11.25 million. Despite having the lowest value increase year over year of the seven presidential second home destinations we analyzed, Dukes County has an average home price of $2,590,922 — the highest priced real estate of these markets. Methodology To compile this report, Pacaso analyzed luxury real estate activity in counties where U.S. Presidents owned second homes and examined average values of homes in the top 20% of those markets and the year-over-year percentage changes. Home price data was provided by Zillow, MLS data sources, and real estate analytics firm

Inflation has reached its highest level since 1981 as the latest Consumer Price Index (CPI) increased 9.1% in June. In addition, mortgage rates in April surpassed 5% for the first time in over a decade and have remained elevated since. This is the first time in recent history that inflation is meaningfully higher than mortgage rates. As the cost of consumer goods in the U.S. rises faster than mortgage rates, there are financial decisions consumers should consider to hedge against inflation. Many advocate putting money into long-term assets such as real estate, including second homes, as a way to hedge against inflation. Although mortgage rates have nearly doubled since the start of 2021, it is important to remember that rates are still well below historical norms. For the past 50 years, 30-year fixed mortgage rates have averaged approximately 8%, even crossing above a staggering 18% in the early 1980s.  Inflation has reached levels we have not seen in over 40 years. Many economists believe that the CPI will remain elevated for the rest of this year and may hold up into 2024. As inflation rises, the cost of everything goes up, including real estate. However, when the CPI growth rate is higher than the current 30-year fixed mortgage rates, homeowners’ will be spending the same monthly amount but with inflated dollars. As a result, smart home shoppers tend to be less concerned about the current levels of mortgage rates when inflation is high. This could provide home buyers with a rare opportunity to make a stable-value investment and take advantage of the growing rate of depreciation of money. In an inflationary environment, consumers want to park their money somewhere that will lose the least amount of value. For that reason, real estate is often considered one of the best ways to hedge against — or beat — inflation. 

I’m Austin, CEO and co-founder of The housing market is picking up steam well into the spring home buying season. Although fewer homes than usual are being sold this spring, buyers are quickly snatching up those that are on the market — even when mortgage rates may be fluctuating. An uptick in mortgage applications indicates that people are optimistic about the market. Some things we’re seeing: 1. Sellers staying put, inventory hits pre-pandemic low According to 2. Fierce competition for desirable homes The current state of the real estate market continues to be highly competitive, as evidenced by the fact that almost half (48%) of the homes sold in the four weeks ending on April 30th were under contract within two weeks according by This spring, the scarcity of inventory is resulting in fewer homes being sold, but those that are 3. Home prices rise for third consecutive month According to a report originally 3. Homebuyers keep a watchful eye on fluctuating mortgage rates According to Meanwhile, the We'll continue to check in with updates, and encourage you to contact us with any questions about a market of interest.

Second home buyer trends: Key takeaways Sales of luxury second homes increased nearly 25% year-over-year during the second quarter of 2022 and approximately 235% compared to Q1 2020, prior to the pandemic intensifying in the U.S.* What’s motivating these second home buyers and more is captured in the This report uses data from a July 2022 survey conducted online among more than 1,000 current and aspiring second homeowners with household incomes equivalent to or above $150,000 in the United States, United Kingdom and Canada. The findings shared in this report are specific to the U.S. “The newfound flexibility many Americans are afforded has made demand for second homeownership stronger than ever as people look to put quality of life front-and-center in their lifestyle,” said Pacaso CEO and Co-Founder Austin Allison. “When you buy a second home, you’re unlocking a new chapter in life, becoming a part of the fabric of the community, and above all else, finding a special place to spend time with friends and family.” “Existing second homeowners have experienced firsthand the life enriching possibilities of second homeownership and thus we expect to have more realistic responses as they have a peak under the hood of how often they use their home as opposed to dreamers who haven’t yet seen their preferred usage,” said Allison. “Our data shows that only  29% of people plan to visit their second home, more than 7x per year. This stat further cements co-ownership as a more efficient and sustainable option, as buyers have the power to own only what they will use. Owning 100% of a home you barely use is wasteful and antiquated.” Location, Price, and Size Drive Second Home Buying Decision  For both existing second homeowners and aspiring second homeowners, location (67% vs. 70%), price (49% vs. 66%) and home size (44% vs. 48%) are the top three most important considerations in purchasing decisions for their families when buying a second home.    Location, location, location! As the desire to own a second home grows, the role of location in the buying decision does as well with 67% of current second homeowners and 70% of aspiring second homeowners choosing location as their number one consideration when thinking about purchasing a second home. However, existing second homeowners (45%) tend to value the appeal of the neighborhood more than non-owners (30%). An inability to afford the second home they want is holding non-second homeowners (66%). Of the people who desire to own a second home but don’t already, four in ten (42%) show concern about the associated costs and more than one-third (35%) are hesitant about the effort to maintain a second home.  Nearly half of all current (44%) and non-second homeowners (48%) consider the size of the property when buying their second home. Both value travel time and amenities as other important considerations. “Maintaining a home at a luxury level with contemporary design, high-end furnishings and decor, top-notch amenities and appliances, regular cleaning and maintenance, comes at high cost and a large time commitment as to care for the home properly,” said Allison. “These buyers are still in the process of considering their lifestyle and how they plan to use their home, how often, and who will take care of it when they’re not there. There are options outside of traditional second homeownership, like co-ownership, that mitigate some ownership issues and provide better value.” Second home dreamers and owners aren’t crazy about catching a plane to head to their second home, but love a road trip Nearly two-thirds of people (64%) commute or expect to commute to their second home in four hours or less and the majority (87%) want to drive. One exception is that current second homeowners are slightly more likely to have longer commutes than those intending to own a second home would expect, as 43% of existing second homeowners commute more than four hours to their second home, while only 31% of intenders expect to travel more than four hours. Without major differences between owners versus non-owners, people overwhelmingly expect to drive to their second home (approaching nine in ten) than those who expect to fly (three in ten) or commute by train (one in ten). How the pandemic changed the definition of second home destinations  The permanent shift toward work-from-home has forever changed the way people work and is giving second home buyers more flexibility to spend time away from their primary home and office. “Both existing second homeowners and aspiring owners prefer domestic second homes because they are more accessible, allowing them to visit more often. These owners and aspiring owners are attracted to a second home to share with their family and friends so they can live life to the fullest,” said Savanta Director Research, Insights and Consulting, Amit Sahni. For second home dreamers, their second home is on the water When asked about their desired location type for purchasing a second home, 61% of non-second homeowners want to be near the water. Non-second homeowners ranked a beach house (42%) at the top of their list, followed by lake (19%) and mountain (14%). More people want their second homes in domestic locales  91% of existing second homeowners own domestically and 15% own internationally, which is in alignment with the desires of non-second homeowners.  Second home owners visit their homes less frequently but stay for longer  Non-owners and existing owners feel nearly the same about the number of trips they make and expect to make to their second home each year with only 29% of people planning to visit their second home more than six times per year. More than half (59%) of existing and intending owners visit and expect to visit their homes more than four times per year, with nearly a third (29%) visiting more than six times per year.   Existing second homeowners (61%) are generally more likely to spend two or three plus weeks on vacation, while people who desire to own a second home are more likely to spend one week or less on vacation (58%). 65% of owners and buyers spend or expect to spend two or fewer weeks per stay. “People who intend to own a second home are daydreaming of a perfect place to run to for a quick escape or for occasional weekend getaways throughout the year,” said Allison. “Whereas people who are already second homeowners may be a bit more comfortable with working from their second home or going for two or more weeks at a time, but just less frequently.” Methodology  Pacaso commissioned market research firm Savanta is a fast-growing data, market research, and advisory company. Savanta informs and inspires clients through powerful data, empowering technology, and high-impact consulting, all designed to help clients make better decisions and achieve faster progress. *

Ready to buy your first home — or With the state of real estate always changing as new homes enter the market, every year showcases new Home financing is becoming more flexible Getting approved for a home loan is a first step for people dreaming of owning a house. The following real estate facts explore home financing options in more depth.  Residential home-buying trends While some buyers may have felt pushed to buy quickly at the onset of Covid-19 lockdowns, many consider their home to be a long-term commitment rather than a temporary alternative (like a short-term 13. A larger share of buyers opted for new homes vs older homes at the end of 2022. ( 14. Luxury second home transactions increased by 25% during Q2 2022. ( 15. 10% of home sales are from new builds in Q1 2023. ( 16. 11% of home buyers bought their home directly from the previous owner. ( 17. 51% of home buyers found their listing on the internet. ( 18. Luxury second homes maintained their value through 2022. ( 19. 81% of Americans value the location of a home over its size. ( 20. In April 2023, new single-family home purchases increased by 4.1% month-over-month. ( 21. Historically, homes listed during April 18-24 sold 14.1% faster than the average week. ( 22. Luxury second home sales have increased by 235% since Q1 2020. ( 23. 54% of millennials want to live close to bars and nightlife. ( 24. Home appreciation was up 21% nationwide in April 2022. ( 25. Existing home sales are down by 9.3% in 2023. ( 26. Unit sales are predicted to increase by 10% in 2024. ( 27. 80% of home buyers prefer a move-in-ready house over a fixer-upper. ( 28. Homes are spending an average of 43 days on the market in May 2023. ( 29. The number of homes on the market in May 2023 increased by 21.5% compared to May 2022. ( 30. The number of homes pending listings declined in May 2023 by 18.1% year-over-year. ( 31. 12.7% of homes sold in May 2023 had a price reduction. ( Housing shortage facts The unexpected increase in the demand for homes led to an understandable shortage in supply. The desire for primary and 32. In 2023, approximately 1.2 million single-family housing units will be under construction. ( 33. Active home listings dropped 28% between 2020 and 2021. ( 34. The US housing market faced a six million home housing shortage at the end of 2022. 35. Home sales in metro areas increased by 20.8% in May 2023 despite housing shortages. ( 36. Apartment builds are expected to reach a 40-year high in 2023. ( 37. 86% of home sellers listed their properties on multiple listing services. ( 38. 56% of home buyers said finding the right property was the most difficult part of the home-buying process. ( 39. 28% of home buyers found the availability of larger lots to be an influence on neighborhood choice. ( 40. New listings of homes for sale fell 25% in June 2023, compared to June 2022 data. ( 41. The average distance between previous and new residences is 50 miles. ( The rising cost of real estate As the price of real estate rises, so does the belief in its long-term value. Home buyers see real estate as a reliable store of value, and in some cases, the houses are being used as a secondary source of income. While a spotlight has been placed on corporations purchasing houses, real estate statistics reveal that the majority of 42. Home sales are predicted to decrease by 3.4% in 2023. ( 43. 72.5% of rental property investors in the U.S. are individuals. ( 44. 13% of home buyers found saving for the down payment to be the most difficult part of the home-buying process. ( 45. 10% of home buyers were dissatisfied with the home-buying process. ( 46. 11% of buyers wanted their real estate agent to help them with price negotiations. ( 47. 25% of home buyers reduced their spending on luxury items to purchase their home. ( 48. 88% of home buyers think that buying a home is still a good financial investment. ( 49. 45% of home buyers had a household income over $100,000. ( Second home-buying statistics Not everyone who buys property in suburban and rural areas is looking for a permanent change in location. Many home buyers 50. In summer 2021, second home transactions held a market share of 4.3%. ( 51. The U.S. vacation rental occupancy rate is forecast to be 56.4% in 2023. ( The state of home prices today It stands to reason that the current housing shortage would lead to an increase in home prices. Although many home buyers were motivated to leave their city, not all metro areas saw their populations decline. Many cities saw boosts to their populations and housing prices — likely aided by the implementation of 52. 72% of home listings were sold without ever reducing their price. ( 53. 9% of all home sales were identified as urgent. ( 54. In the first quarter of 2021, Boise, Idaho, saw a 28% year-over-year rise in house prices, the highest among metro areas. ( 55. In the first quarter of 2021, Austin, Texas, saw the second highest year-over-year rise in house prices at 23%. ( 56. Renting was more popular than buying in the vast majority of the largest U.S. metros in December 2022. ( 57. 24% of home sales were above the listing price. ( 58. 8% of home buyers sold a distressed property. ( 59. Debt delayed most home buyers by four years before they were able to purchase a home. ( 60. 27% of buyers compromised on the price of their home purchase. ( Allow these real estate facts to guide you as you consider purchasing your first or