Owning a vacation home seems like the dream, until factoring in maintenance, property taxes, and the reality of only using it a few weeks a year. Fractional ownership, which  means owning a share of a property, is changing that equation, making luxury getaways more accessible while keeping costs and responsibilities in check.¹

Fractional vs. traditional ownership 

Fractional ownership differs significantly from traditional timeshares. Instead of merely purchasing usage rights, fractional buyers own actual shares of the property. Owners split costs and have a fully managed experience, with companies like Pacaso, Lifestyle Asset Group, and Ember popularizing this model in the U.S.² By purchasing a stake in a high-end home, buyers secure a set number of days per year while avoiding the full financial burden of sole ownership.

It’s kind of like the real estate version of ride-sharing — everyone gets to enjoy the asset without taking on the full burden of ownership.

Unlike timeshares, which often depreciate and provide no equity, fractional ownership offers the potential for appreciation. In fact, Pacaso reports that fractional shares of their properties have appreciated an average of 9.7% on resale.³

Read more: Equity rich: How American homes built $30K-a-year in value

Why fractional is gaining momentum

The concept of co-buying isn’t new. A 2024 Zillow report revealed that 63% of home buyers share ownership of their home.⁴ While 52% of these buyers purchase with a partner or spouse, 7% co-buy with a friend, and 9% with a relative. Buyers who are single and never married are most likely to purchase a home with a friend or relative (25%), compared to 15% of those who are divorced, separated, or widowed, and 11% of those who are married or have a partner.

Fractional ownership appeals to a range of people, from Hollywood celebrities and pro athletes to frequent travelers who can't justify year-round upkeep, and luxury seekers who want high-end homes without shouldering the full financial responsibility.⁵ For example, owning one-eighth of a mountain cabin or beachfront villa might provide 44 days of annual access, while expenses like property taxes and maintenance fees are divided among co-owners.

While fractional ownership can offer people a way into a home that they couldn’t otherwise afford, it’s often used for second (and third or fourth) homes — many of which are multi-million-dollar luxury properties in popular vacation spots.⁶

Another major draw? Convenience. Management companies handle everything — from cleaning to scheduling — so owners don’t have to deal with leaky pipes, maintenance headaches, or the stress of finding a property manager when they aren’t using the home. They simply arrive, unpack, and enjoy.

Read more: Will 2025 be the year of the first-time home buyer?

Aspirational purchases

For many, a vacation home has always felt like a “someday” purchase. But fractional ownership is turning that dream into a present-day reality. According to Empower’s Dreamscrolling research, 25% of people search for the perfect vacation destination, while 21% look at home listings for new properties.

And given the rising cost of real estate and high interest rates, the timing for fractional ownership may make sense. Empower’s Financial Peace of Mind research shows that 68% of Americans are willing to pay more for services that give them a greater sense of financial stability. For many, fractional ownership offers an attractive balance — access to luxury without a long-term financial burden.

Things to consider before jumping in

Despite its advantages, fractional ownership isn’t a one-size-fits-all solution. Some key considerations:

• Limited flexibility: Owners share access to the home, meaning peak holiday weeks can be competitive. Those who prefer spontaneous travel may find booking restrictions frustrating.

• Resale challenges: Selling a fractional share isn’t as straightforward as listing a standalone home. The market for fractional resales is growing but still niche. There is also the “mansion tax” in some areas to consider.

• Management fees: While fractional homes relieve owners of maintenance hassles, management fees can add up, impacting overall cost savings.

A smarter way to vacation?

Fractional ownership isn’t just a trend — it’s a reflection of how people are rethinking luxury, flexibility, and financial priorities. For those who want the benefits of a vacation home without the second-home headaches, co-ownership offers an alternative. And as travel habits evolve and real estate prices continue their upward march, this model could gain even more traction.