Dreaming of owning a luxury vacation home but feeling overwhelmed by the price tag and maintenance headaches? You're not alone. For years, the idea of having a personal retreat in a prime location seemed out of reach for many. However, the evolution of fractional ownership is changing the luxury real estate industry.
Owning a piece of paradise doesn't have to empty your bank account. Fractional ownership lets you buy a share of a high-end property, providing all the perks of vacation home ownership at a fraction of the cost.
So, where are the hottest spots for fractional ownership this year? We've compiled a list of America's most sought-after destinations for fractional ownership. Sun-soaked beaches, mountain retreats, urban hotspots, and secluded getaways - we're covering it all.
Whether you're looking to diversify your portfolio or looking to make your vacation dreams a reality, there is a perfect fractional property for you. We'll show you why these destinations are catching the eye of savvy buyers and travellers.
The allure of fractional ownership properties often begins with the surroundings. Breathtaking landscapes — whether coastal vistas, mountain panoramas, or serene lakefronts, significantly enhance a property's desirability. These picturesque settings provide a stunning backdrop for vacations and contribute to the property's long-term value. *
A region's economic health is crucial in fractional ownership appeal. Areas with robust economies, diverse job markets, and steady growth tend to see consistent or increasing property values. * Economic stability makes these locations attractive for vacationing and a sound growth opportunity.
Diverse activities can make or break a destination's appeal. Top fractional ownership spots often boast various recreational options, from outdoor adventures to cultural experiences. These amenities enhance the ownership experience and boost rental potential when owners aren't using the property. *
Easy access to the property is a crucial consideration for many buyers. Locations near major airports or with good road connections are often preferred. Additionally, well-developed local infrastructure, including quality healthcare facilities and modern amenities, adds to a destination's attractiveness.
A place with distinct personality, culture, and history stands apart from other destinations. Areas with a strong sense of identity have a special draw, creating memorable experiences that keep owners and renters returning year after year.
According to CoBuy's 2024 report on Co-buying and Co-owning a Home, co-buyers will account for 26.7% of all US home purchases in 2023.
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Florida's allure for fractional ownership lies in its pristine beaches and coastal luxury. From the vibrant shores of Miami to the serene Gulf Coast, owners can enjoy miles of white sand and crystal-clear waters. The year-round warm climate makes it an ideal escape, especially for those from colder regions.
Beyond the beaches, Florida offers world-famous attractions and entertainment, including Disney World, Universal Studios, and Kennedy Space Center. The state's diverse ecosystem, from the Everglades to coral reefs, provides unique outdoor experiences. With no state income tax and a strong tourism industry, Florida presents a solid growth opportunity in the fractional ownership market. *
The Lone Star State's appeal for fractional ownership stems from its diverse landscapes and booming economy. Owners enjoy rolling hills, vineyards, and charming small towns in Hill Country. The Gulf Coast offers beautiful beaches and world-class fishing. Texas's economy, driven by technology, energy, and healthcare industries, contributes to strong property values and rental demand. *
The state's rich cultural heritage is evident in its vibrant cities, such as Austin, known for its music scene, and San Antonio, with the historic Alamo. Modern urban cities like Houston and Dallas offer cosmopolitan experiences with top-notch dining, shopping, and cultural attractions. The absence of state income tax adds to Texas's financial appeal for property buyers.
Utah's appeal for fractional ownership centers on its scenic landscapes, outdoor activities, and economic growth. The state boasts five national parks, including Zion and Arches, offering unparalleled natural beauty. Year-round outdoor activities range from world-class skiing in Park City to hiking and mountain biking in Moab.
The charming city of St. George in southwestern Utah adds to the state's allure with its red rock scenery, proximity to Zion National Park, and year-round warm climate, making it ideal for golf enthusiasts and outdoor adventurers. In the north, Bear Lake, often called the "Caribbean of the Rockies" for its turquoise waters, offers a mountain lake experience with opportunities for water sports and beach relaxation.
The state's unique cultural attractions, like the Sundance Film Festival, add to its appeal. With a mix of desert landscapes and mountain ranges, Utah offers diverse options for luxury properties, from ski-in/ski-out chalets to desert retreats.
Arizona's fractional ownership market thrives on its desert luxury, golf paradises, and warm winter climate. Cities like Scottsdale offer high-end resorts, spas, and some of the best golf courses in the country. The state's warm winters make it a popular destination for snowbirds seeking to escape colder climates.
Beyond the desert, Arizona offers unique attractions like the Grand Canyon and the red rock formations of Sedona. The state's Southwestern charm is evident in its architecture, cuisine, and cultural events. Arizona's strong tourism industry and growing population contribute to the potential for property appreciation and rental revenue. *
North Carolina's fractional ownership market benefits from its diverse geography and growing economy. In the west, the Blue Ridge Mountains offer stunning retreats with opportunities for hiking, skiing, and enjoying fall foliage. The Outer Banks in the east provide coastal properties with pristine beaches, historic lighthouses, and water sports.
The state's emerging tech hubs, particularly in the Research Triangle (Raleigh-Durham-Chapel Hill), contribute to economic growth and property appreciation. * Cultural centres like Asheville, known for its arts scene and craft breweries, add to the state's appeal. With four distinct seasons, North Carolina provides year-round enjoyment for fractional owners.
Ohio's emergence in the fractional ownership market is driven by its Lake Erie waterfront properties, urban renewal, and Midwestern charm. The Lake Erie shores offer beautiful views, water activities, and access to popular islands like Put-in-Bay. Cities like Cleveland and Cincinnati are experiencing significant urban renewal, with revitalized downtown areas, world-class museums, and growing food scenes.
Ohio's affordability compared to coastal states makes it an attractive option for luxury properties. The state's diverse attractions, from Cedar Point amusement park to the Rock and Roll Hall of Fame, provide ample entertainment options. Ohio's central location in the U.S. also makes it easily accessible for many domestic travellers.
Georgia's fractional ownership appeal spans from urban sophistication to coastal luxury. Atlanta, the state capital, offers a cosmopolitan experience with world-class dining, shopping, and attractions like the Georgia Aquarium and the World of Coca-Cola. The Golden Isles, including St. Simons and Jekyll Island, provide coastal luxury with pristine beaches, historic sites, and exclusive resorts.
Georgia is also known for its Southern golf destinations, including the famous Augusta National Golf Club. The state's diverse landscape, from the Blue Ridge Mountains in the north to the Okefenokee Swamp in the south, offers varied experiences for outdoor enthusiasts. Georgia's growing film industry and strong business sector contribute to its economic stability and property value growth. *
Virginia's fractional ownership market benefits from its rich history, emerging wine country, and strategic location. History buffs can explore colonial Williamsburg, Thomas Jefferson's Monticello, or the numerous Civil War battlefields. The state's wine country in regions like Charlottesville offers picturesque vineyard properties.
Coastal retreats in Virginia Beach provide oceanfront luxury with miles of sandy shores and a lively boardwalk. Virginia's proximity to Washington D.C. makes it an attractive location for those seeking easy access to the nation's capital while enjoying a more relaxed lifestyle. The state's diverse geography, from the Blue Ridge Mountains to the Chesapeake Bay, offers varied recreational opportunities for fractional owners.
Quick Facts:
Between 2018 and 2021, the percentage of first-time buyers in the market decreased from 46% to 37%. However, this trend reversed in 2022, with first-time buyers accounting for 45% of all home purchases. The upward trajectory continued into 2023, with a significant jump to 50% of buyers entering the market for the first time.
Source: Zillow Consumer Housing Trends Report 2023
Given the robust growth of the U.S. real estate market and increasing interest in property ownership, the proportion of first-time buyers will likely continue to rise in the coming years. This trend suggests a growing appetite for property ownership, which could further fuel the fractional ownership market as more people seek affordable ways to own luxury vacation homes.*
Idaho is gaining recognition in the fractional ownership market for its pristine wilderness, outdoor adventures, and growing economy. The state offers vast, unspoiled natural areas like the Sawtooth National Recreation Area, perfect for hiking, fishing, and wildlife viewing. Idaho's growing wine country in regions like the Snake River Valley adds a touch of sophistication.
Boise, the state capital, has a booming real estate market driven by its growing tech industry and quality of life. Winter sports enthusiasts can enjoy world-class skiing at resorts like Sun Valley. Idaho's affordability compared to neighboring states like California makes it an attractive option for luxury vacation properties.
Colorado's fractional ownership market is driven by its world-class ski resorts, Rocky Mountain beauty, and vibrant cultural scene. Resorts like Vail and Aspen offer luxury slope-side properties and year-round mountain activities. The state's natural beauty, from the Garden of the Gods to Rocky Mountain National Park, provides stunning backdrops for luxury homes.
Colorado's outdoor recreation opportunities extend beyond skiing to include hiking, mountain biking, and white-water rafting. Cities like Denver and Boulder offer a perfect blend of urban amenities and easy access to nature. The state's strong economy, driven by industries like aerospace, bioscience, and renewable energy, contributes to property value growth. *
At Lake Escape, we've thoughtfully designed every aspect of your stay to ensure maximum comfort and convenience. Here's what awaits you in your slice of Lake Powell paradise:
At Lake Escape, we've created more than just a luxury vacation home – we've crafted a base camp for your Arizona adventures. Whether you're lounging indoors, admiring the view, or preparing for a day on the lake, you'll find that every aspect of Lake Escape is designed to enhance your experience of this breathtaking region.
Fractional ownership in 2024 offers diverse options across the United States. From coastal retreats to mountain getaways, urban sophistication, and rural charm, there is a fractional ownership opportunity to suit every taste and growth opportunity. *
For people looking to step into the world of luxury vacation homes, fractional ownership presents an attractive proposition. It offers the prestige and enjoyment of owning a high-end property while mitigating many of the traditional challenges of second home ownership.
As you consider your options, do not overlook the exciting opportunities available in Utah. With its stunning natural beauty, year-round recreational activities, and strong economic growth, Utah represents an excellent choice for fractional ownership. * Explore Fraxioned's properties in Utah to discover how to make your luxury vacation dreams a reality in one of America's most promising real estate markets.
(*) Disclaimer: Fractional share ownership via Fraxioned is not considered an investment. Potential rental income or property value appreciation is incidental to actual ownership. Fraxioned makes no guarantees regarding financial returns. The primary intent is to provide vacation homes for personal use and enjoyment.
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I honestly thought this place was too good to be true. Until we showed up! Everything was just like the photos, and there was so much to do INSIDE the house, that no one was ever board. We came in for our wedding and had out entire wedding party stay with us. Day of the wedding, i stayed on the 2nd floor playing games the whole time while the bride got ready on the 1st floor (since we couldn't see each other until the ceremony). Everything was neatly laid out and the instruction on how to work the pool/check-in were very clear. This was the best Airbnb i've ever been too, and my friends/family loved everything about it!
What a dream! Ownership with Fraxioned is sensical and hassle-free. We just bring our clothes and get a clean, beautiful home fully ready to dive into our vacation; every time. The rental income has also been very nice to cover the expenses and has been an easy investment to track.
My husband and i had been looking for a good "starter" investment. We wanted to start and airbnb but it was just going to be such a big expense. Fraxioned was the perfect solution, because we were able to purchase 1/8 of a home, instead of the whole thing! Dan Henry sold us a share of a beautiful home in Bear Lake, and he was so nice and easy to work with! He was always available to answer questions and send over information. Definitely would recommend Fraxioned to anyone who is wanting to get into real estate investing, without having to spend your life saving to do it!
What an experience!! The ease of driving up and everything was ready for us. Not just a rental experience but the wonderful feeling of owning the property we vacation in. The team at FRAXIONED is so helpful and always available to handle any needs we have, big or small. we own three shares in two different properties and it is one of the best decisions we have made for our family.