Lowering the cost of housing: Pacaso is the solution to affordability.

Pacaso conducted a study of the 10 most active counties in the country for real estate co-ownership and found that this trend increased by 21 percent in 2023. The rate of homeownership correlates with the increase in the Home Price Index (HPI) in these counties.

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According to a Feb. 14 press release, Pacaso, the company that formalized the modern model of real estate co-ownership, found that buying a home before marriage or even without a formal "union" is becoming increasingly popular. Second Home Solution studied the 10 most active counties in the country for real estate co-ownership and found that the trend grew 21 percent in 2023.

The report showed that HPI rose 6.8 percent in the areas studied, indicating that co-ownership is a growing solution to the nation's housing affordability challenges, as confirmed by Zillow's Consumer Housing Trends report. The Zillow study found that 6,500 buyers surveyed cited high affordability as the primary motivation for co-ownership.

"This trend transcends regional boundaries, and we have seen impressive growth in co-ownership across states such as Pennsylvania, Maine, West Virginia, Nebraska and Virginia," Pacaso said in a statement. "Moreover, HOA's growth is not limited to specific urban or rural real estate markets, underscoring its broad and inclusive presence in the real estate market."

Pacaso's primary market is second homes in the luxury prov inspire market. The company invests in real estate and then sells shares of that real estate to buyers who co-own the home with other shareholders. This reduces the cost of entry for those wishing to own a second home. The tactic allows up to eight owners to be combined in a single property with regulated periods of use, reducing the number of properties subject to infrequent use or short-term rentals.

"For those looking to enter the real estate market, high barriers in the form of high home prices and high mortgage interest rates often prevent people from making a home purchase," said Pacaso CEO and co-founder Austin Allison.