You may have read about Pacaso, the company I represent, and our co-ownership model. Allow me to introduce more about our approach to second home ownership and how it can benefit Park City.
Like many communities throughout the country, Park City’s housing market is currently unsustainable with record lows for inventory and highs for prices. A surprising contributor to this problem? Traditional second homes.
There are about 6,500 second homes in Park City which, on average, sit empty 89 percent of the year. Demand for these homes rose dramatically during the pandemic and remote work may make it durable.
The question for Park City, and other communities like it, is how to respond. Pacaso offers one way forward. Economists have studied our model and conclude that consolidating second home demand into fewer luxury homes relieves competition for median priced homes .
We’ve heard the concerns. Let me address them.
After the home is sold, Pacaso supports owners as a local property manager and retains no ownership in the home.
Pacaso owners are responsible families who are committed to being a good neighbor and enhancing the local community. Like anyone, owners abide by local ordinances. Owners also follow a Code of Conduct that supports a high quality of life in the neighborhood where they live. These policies restrict noise and prohibit short term rentals in their homes.
Additionally, Pacaso homes are owned by an average of six families who come back over and over again, just like any other second home owners. It’s not a revolving door of thirty new groups on average every year like you find with short-term rentals.
Pacaso is committed to supporting the Park City community and maintaining its existing character. We hire local, in-market employees to serve as liaisons between us, our owners and community members. We have also partnered with multiple Park City businesses to help support the local economy. On average, Pacaso homes spend more than 10x the traditional second home at local businesses and make more tax contributions than traditional second home owners.
While there are just ten Pacaso homes in Park City today, we believe our approach is a win-win for the community in the long term. Second home owners get a share of property in a community they love, while Park City sustainably incorporates second home owners.