The Second Home Problem: Why 80% of Buyers Now Prefer Co-Ownership

For decades, the second home was the ultimate status symbol — a villa on the coast, a chalet in the mountains, a sun-drenched apartment overlooking the Mediterranean. But behind the glossy brochure, reality told a different story. Properties sat empty for ten or eleven months a year, maintenance bills arrived regardless of whether anyone was there to enjoy the pool, and the sheer capital required locked out all but the wealthiest buyers. The dream, for most people, was simply unaffordable — and for those who could afford it, often impractical.

Now the data confirms what the market has been whispering for years. A Pacaso survey found that 80% of U.S. adults view professionally managed co-ownership as an attractive way to access a second home — and 64% would actively consider buying if they could split costs with other owners. The co-ownership property model isn’t a compromise. It’s a correction. And in 2026, it’s becoming the smartest route into luxury real estate.

The economics of owning a second home outright have become increasingly difficult to justify. According to Knight Frank’s 2025 Wealth Report, demand for prime property continues to outstrip supply in most desirable markets — pushing prices higher while usage rates remain stubbornly low. The typical second home owner uses their property for just 4 to 6 weeks per year, meaning the house sits vacant for roughly 90% of its life.

Meanwhile, the carrying costs never stop. Insurance, property taxes, local management, garden maintenance, pool servicing, security systems, and periodic renovations add up to thousands of euros annually — regardless of occupancy. A J.P. Morgan 2026 housing outlook notes that while overall price growth has slowed to roughly 1% nationally in the U.S., luxury resort markets remain insulated from discounting, with median listing prices in top coastal cities exceeding $1 million.

For many affluent professionals — the 40-to-55-year-old demographic most likely to consider a holiday home — the maths simply no longer adds up. Tying up €500,000 to €2 million in a property you visit six weeks a year, while shouldering 100% of the running costs, feels less like a lifestyle upgrade and more like an expensive storage unit you occasionally sleep in.

The shift towards co-ownership explained models isn’t happening in a vacuum — it’s being driven by a convergence of economic pressure, generational change, and improved infrastructure. The global fractional ownership market reached $9.4 billion in 2024 and is projected to grow at a compound annual rate of 13.7% through 2033, according to Growth Market Reports. That trajectory would push the market past $29 billion within the decade.

What’s changed is accessibility and trust. A decade ago, shared property meant complicated family arrangements or opaque timeshare schemes with restrictive exit terms. Today, professionally managed co-ownership operates through transparent LLC structures where each buyer holds a deeded share in a real legal entity that owns the property. You’re not buying access — you’re buying fractional ownership in bricks and mortar, with the ability to sell your share on the open market at any time.

The demographic data is equally telling. Millennials and retirees show nearly identical enthusiasm for co-ownership, at 66% and 63% respectively, according to Pacaso’s research. This isn’t a generational fad — it’s a structural preference that spans age groups, income levels, and geographies.

Consider a luxury three-bedroom villa on the Costa del Sol properties valued at €800,000. Full ownership means an upfront cost of €800,000 plus purchase taxes and fees, annual running costs of approximately €15,000 to €25,000, and the constant concern of managing the property remotely. A 1/8th co-ownership share in the same property starts from around €100,000, with proportional running costs of roughly €2,000 to €3,000 per year — and the management is handled entirely for you.

The usage equation is equally compelling. A 1/8th share provides approximately 45 days of personal use per year — which, for most second home buyers, is actually more than they would realistically use with full ownership. When you factor in the opportunity cost of the remaining capital — the €700,000 difference that could be invested, used for another property, or simply left to grow — the benefits of fractional ownership become overwhelming.

As one industry analysis puts it, co-ownership allows buyers to align their investment precisely with their actual usage. No more paying 100% of the costs for 10% of the enjoyment.

Modern co-ownership has evolved far beyond informal family arrangements. When you purchase a share through Co-Ownership Property, you become a shareholder in a registered LLC that holds the title to a specific property. This is deeded real estate — your name is on the legal entity, and your share appreciates (or depreciates) with the underlying property value. This structure has been specifically designed and optimised by specialist tax and law firms.

The co-ownership buying process is straightforward. You select a property, choose your share size, complete legal due diligence, and close — much like any conventional property purchase. Once you’re an owner, a flexible booking app lets you reserve stays from 2 days to 2 years in advance. There are no fixed weeks, no rotation schedules, and no coordination required with other co-owners.

When you arrive, your personal belongings are taken out of storage and the home is prepared specifically for you — fresh linens, stocked kitchen, everything exactly as you left it. When you leave, the management team handles turnover, cleaning, and maintenance. It’s the experience of owning a luxury holiday home without any of the operational burden. That’s the key difference from full ownership comparison — zero hassle, maximum enjoyment.

The growth in co-ownership isn’t uniform — certain markets are seeing explosive demand driven by a combination of lifestyle appeal, strong property fundamentals, and favourable regulatory environments. In the European Alps, year-round resort properties that offer both winter skiing and summer hiking are particularly popular, with French Alps properties leading the way.

Spain’s Costa del Sol properties and Balearic Islands properties continue to attract co-ownership buyers, driven by 300+ days of sunshine, excellent flight connectivity, and a mature hospitality infrastructure. Meanwhile, in the United States, Colorado ski resorts and California coastal markets are seeing growing demand from buyers who want Colorado properties or California properties access without the multi-million-dollar commitment of full ownership.

The Italian Lakes represent another fast-growing market, where Italian Lakes properties offer a blend of cultural richness, natural beauty, and strong capital appreciation. According to Savills, branded and managed residences — a category that includes co-ownership — have nearly tripled in supply over the past decade, with 837 additional projects in the pipeline through 2032.

Despite the data, some buyers still hesitate — often because of misconceptions rooted in the timeshare era. Let’s address the most common concerns head-on. “Isn’t this just a timeshare?” No. A timeshare gives you a right to use a property for a fixed period. Co-ownership gives you a deeded legal stake in a real property held by an LLC. You can sell your share at market value whenever you choose. There are no points systems, no developer markups, and no lock-in periods.

“What if I can’t book when I want?” The flexible booking system allows reservations from 2 days to 2 years in advance. With only 8 owners sharing a property and 365 days in the year, there’s significant availability — far more than most owners actually use. Peak season is managed through fair rotation, and most owners report booking exactly when they want without difficulty.

“Can I actually sell my share?” Yes — and typically faster than selling a full property. Shares are first offered to existing co-owners in the property, then listed on the open market. Average resale time is around one month, compared to the 3 to 12 months typical for full property sales. Read more in our guide to selling your share.

There’s a deeper cultural shift underlying the co-ownership boom. The traditional definition of luxury — owning more, bigger, exclusive — is giving way to a new paradigm: access, experience, and freedom. Today’s affluent buyers don’t want to be tied to a single location. They want a mountain lifestyle in winter, a beach lifestyle in summer, and the flexibility to change their minds.

Co-ownership makes this possible. Instead of sinking €1 million into a single villa, a buyer could own shares in two or three properties across different countries — an Alpine chalet, a Mediterranean apartment, and a city pied-à-terre — for the same total investment. Each property is fully managed, fully furnished, and ready whenever they want it. Browse all properties to see how this works in practice.

This is why the Redfin 2026 housing forecast describes the current moment as a “Great Housing Reset” — a fundamental rethinking of how people relate to property. For second home buyers, the reset means moving away from the burden of full ownership and toward the freedom of shared luxury.

If the idea of co-ownership resonates, the next step is simpler than you might think. Start by browsing the best properties available — each listing includes full details on location, share price, amenities, and usage structure. You’ll find properties across Europe and the USA, from ski chalets to beachfront villas to city apartments.

For a deeper understanding of how co-ownership works, our FAQs on buying and running costs guide cover everything from legal structures to annual expenses. And when you’re ready to take the next step, our specialists are available for a free, no-obligation consultation to match you with properties that fit your lifestyle and budget. Simply fill in our consultation form to get started.