Rooming Up the Ownership Equation (Transmission #308)

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We all know living with others brings down the cost of housing. Enter every sorority, fraternity, and college dorm ever as proof.

To live with others, you fundamentally have to trust them. To live in a shared housing rental scenario (generally in duplexes, shared houses, or apartments), that bar is low because ending a lease isn’t prohibitively challenging. Thus, ❇️co-living❇️  has become more appealing than ever due to the lack of affordable housing.

But renting smaller spaces or rooms doesn’t offer ownership, you’re still paying your landlord every month for the right to maintain the residence. Equity isn’t being built to put you on the path to building real estate wealth. And actually buying a place that involves a shared living arrangement has an even higher trust bar due to exiting the arrangement being significantly more complex.

Current market conditions and demographic shifts are ❇️creating a resurgence in the need for shared living arrangements❇️. Unlocking co-ownership opportunities for a wider segment of the population marks the best strategy for bringing more people into the real estate ownership equation.

THE EQUATION THUS FAR
The ❇️fractional second homes ecosystem❇️  isn’t yet mature, but it’s getting closer as Pacaso continues to pave the way. Pacaso serves the clear high-net-worth customer opportunity, and is slowly lowering the price point to reach a broader segment. Kokomo has re-emerged from the ashes as a marketplace, and it’s only a matter of time before Pacaso follows suit.