The dream of owning a luxury vacation home (a sun-drenched villa, a chic city apartment, a cozy mountain chalet) is a powerful one. For many, however, the steep price tag and responsibilities of whole ownership have kept this dream out of reach. But what if you could own a piece of that dream, sharing the costs and responsibilities while still enjoying the full luxury experience? Welcome to the world of co-ownership, a rapidly growing trend that is making luxury vacation homes more accessible than ever.
Co-ownership, also known as fractional ownership, allows multiple buyers to collectively own a high-end property. Each owner holds a real estate interest in the property, typically through a Limited Liability Company (LLC), and is entitled to use the home for a certain number of weeks each year. This innovative model is not timeshare; it’s true ownership. You build equity, and you can sell your share. A 2024 Zillow report revealed that 63% of home buyers share ownership of their home, and a recent Pacaso survey found that a staggering 8 in 10 Americans are open to the idea of co-owning a second home.
This surge in popularity is driven by a desire for affordability, flexibility, and hassle-free enjoyment. With rising property values in the most desirable vacation destinations, co-ownership provides a practical and intelligent path to luxury. In this article, we will explore the best U.S. cities for luxury co-owned vacation homes, drawing on market data and lifestyle trends to highlight the destinations where this model is thriving.
The Rise of Luxury Co-Ownership
The concept of co-buying isn’t new, but its application to the luxury vacation home market has been revolutionized by platforms like Pacaso, Ember and Fraxioned. These companies have streamlined the process, handling everything from property acquisition and legal structuring to interior design, maintenance, and scheduling. The result is a turnkey experience that allows owners to simply show up and relax.
The model is particularly compelling in today’s economic climate. As Pacaso CEO and Co-Founder Austin Allison notes, “The destinations on this year’s list really capture the breadth of the luxury vacation home market… These aren’t just weekend getaways anymore; they’re lifestyle investments for people looking to create endless cherished memories with friends and family.” With mortgage rates beginning to ease and home purchase applications on the rise, the demand for both primary and secondary homes is set to grow into 2025 and beyond.
So, where are savvy buyers investing? Let’s dive into the top U.S. markets that are becoming hotspots for luxury co-ownership.
Top U.S. Cities for Luxury Co-Ownership
1. The Jersey Shore: Cape May & Ocean County, NJ
Topping the charts for 2024 is Cape May County, New Jersey, a classic American seaside destination that has become a prime market for luxury co-ownership. With a staggering proportion of second homes to primary homes exceeding 150%, the Jersey Shore is a beloved getaway for residents of major metropolitan areas like Philadelphia and New York City. The appeal is timeless: charming beach towns, family-friendly boardwalks, and miles of sandy coastline.
Cape May, the southernmost county in New Jersey, boasts iconic towns like Ocean City and Avalon, where the average vacation home price remains above $1 million. Its neighbor, Ocean County, offers 40 miles of barrier beaches and popular communities like Long Beach Island and Point Pleasant Beach. The high concentration of second homes and strong, stable property values make this region a secure and attractive investment for co-owners looking for a traditional, multi-generational vacation experience.
2. Florida’s Emerald Coast: Walton & Gulf Counties, FL
Florida has long been a magnet for vacationers, but in 2024, the Panhandle is shining particularly bright. Counties like Walton and Gulf are experiencing a surge in popularity, driven by the allure of the famous 30A scenic highway, a favorable tax environment, and breathtaking natural beauty. Walton County is home to a string of upscale beach towns along the Emerald Coast, including Alys Beach, Seacrest, and Seaside, making it a hotspot for luxury development and co-ownership opportunities.
Gulf County, part of the Panama City metro area, offers an equally compelling proposition with 244 miles of pristine white-sand shoreline. The region attracts a mix of snowbirds, families, and investors, all drawn to the laid-back lifestyle and the high potential for rental income. The growing demand and appreciating property values make Florida’s Panhandle a smart choice for those looking to combine personal enjoyment with a sound financial investment.
3. The Urban Oasis: New York, NY
When you think of a vacation home, a bustling metropolis might not be the first thing that comes to mind. However, New York County (Manhattan) is experiencing a remarkable resurgence as a second-home destination. In 2024, second homes made up more than 33% of properties compared to primary homes, a testament to the city’s enduring appeal. Following a pandemic-induced exodus, buyers are returning to invest in luxury urban properties, not as primary residences, but as pieds-à-terre for work, leisure, and cultural immersion.
Co-ownership in Manhattan offers a unique value proposition: access to a world-class city without the full cost and commitment of a traditional apartment purchase. It’s the perfect solution for those who want a consistent, comfortable, and luxurious base for frequent visits, whether for business, theater weekends, or simply to soak in the energy of one of the world’s great cities. The long-term value of Manhattan real estate adds a strong investment component to the lifestyle benefits.
4. Legacy Luxury: Cape Cod, MA & Newport, RI
Some destinations are simply timeless. Cape Cod (Barnstable County, Massachusetts) and Newport, Rhode Island, are legacy markets steeped in history, prestige, and a unique coastal charm. These are the places of presidential retreats and Hollywood legends, and they continue to dominate the high-end second-home market. Newport County boasts an average vacation home price of over $1.5 million, reflecting its status as a playground for the affluent.
Cape Cod, home to the iconic Kennedy Compound, offers a more understated, yet equally luxurious, experience. These markets are characterized by their strong cultural identity, from the sailing scene in Newport to the quaint villages of the Cape. For co-owners, investing here is about more than just a property; it’s about buying into a piece of American history and a tradition of refined coastal living. These are stable, blue-chip markets that promise enduring value and appeal.
5. Mountain & Adventure Havens: Bend, OR; Flagstaff, AZ; Bozeman, MT
A growing number of buyers are seeking vacation homes that offer a blend of adventure, wellness, and natural beauty. This trend has put a spotlight on cities located near national parks and epicenters of outdoor recreation. Deschutes County (Bend, Oregon), Coconino County (Flagstaff, Arizona), and Gallatin County (Bozeman, Montana) are all prime examples of this shift.
These markets attract a new breed of luxury buyer: one who prioritizes an active, outdoor-oriented lifestyle. Whether it’s skiing in the mountains near Bozeman (where the average vacation home price is over $1.3 million, thanks to its proximity to Yellowstone), hiking in the Coconino National Forest near Flagstaff, or enjoying the laid-back vibe of Bend, these destinations offer a perfect escape from the hustle and bustle of city life. Co-ownership makes these desirable, and often expensive, markets more accessible, allowing more people to invest in a lifestyle centered on wellness and adventure.
Conclusion
The landscape of luxury vacation home ownership is being redrawn. From the classic shores of Cape Cod to the vibrant streets of Manhattan and the rugged mountains of Montana, the dream of a second home is becoming a reality for more people through the smart, flexible, and affordable model of co-ownership. Each of these top U.S. cities offers a unique blend of lifestyle and investment potential, making them ideal locations to explore this exciting new chapter in real estate.
As you consider your own vacation home dreams, remember that you no longer have to choose just one. With co-ownership, you can build a portfolio of properties, diversify your investments, and create a lifetime of memories in the places you love most. The journey to your dream vacation home may be closer than you think. We encourage you to explore the platforms and destinations leading this charge, and to discover how co-ownership can unlock a world of possibilities for you and your family.
