Pacaso
| Company type | Private |
|---|---|
| Industry | Real estate |
| Founded | October 1, 2020 |
| Headquarters | , |
Key people | Austin Allison, Spencer Rascoff |
Number of employees | 200+[1] |
| Website | pacaso.com |
Pacaso is a privately held American real estate company based in San Francisco, California. Founded in 2020 by former Zillow executives Austin Allison and Spencer Rascoff, the company facilitates co-ownership of single-family homes by purchasing properties and selling fractional shares to multiple buyers.
History
Austin Allison and Spencer Rascoff, ex-Zillow executives, co-founded the start-up in October 2020[2] in Silicon Valley, California.[3]
Pacaso’s valuation rose to $1.5 billion in September 2021 following a $125 million funding round led by SoftBank Group.[4] Other investors include Greycroft Partners and Global Founders Capital.[5] In September 2024, Pacaso launched a Regulation A+ equity crowdfunding round aimed at raising up to $75 million from retail investors. Pacaso is reported to have separately obtained $1 billion in debt financing.[5]
As of May 2024, the company is active in nearly 40 markets in the U.S., as well as in the United Kingdom, Mexico, and France.[6][7][8]
Business model
Pacaso operates on a fractional ownership model. The company purchases single-family homes, performs light renovations, furnishes them, and transfers each property into a dedicated limited liability company (LLC). Ownership of the LLC is divided into up to eight shares, which are then sold through Pacaso's platform.[9]
Each share entitles the owner to use the property for up to 44 nights per year, with a maximum stay of 14 consecutive nights per visit. Owners can also assign their time to friends or family. Pacaso provides a mobile application to manage scheduling and oversees property management, maintenance, and cleaning.[9]
The company charges a 12% service fee on the initial purchase price and collects monthly management fees. Shareholders are required to hold their interest for a minimum of one year, after which they may resell their share, potentially realizing gains or losses based on changes in the property's value.[9]
A 2025 study by the Bay Area Council Economic Institute found that Pacaso homes in California had an 89% occupancy rate, compared to 39% for traditional second homes. The report noted higher local spending, increased tax revenue, and more consistent support for local businesses.[10]
Criticism
Pacaso has encountered opposition from some local communities. In Sonoma County, residents have advocated for stricter regulations on co-ownership arrangements, expressing concerns that such models could undermine the area's sense of community. Co-founder Austin Allison has stated that some early resistance stemmed from confusion between Pacaso’s model and short-term rental platforms such as Airbnb.[11]
References
- ^ "Pacaso". Craft. Retrieved March 23, 2022.
- ^ Kirsch, Noah (April 24, 2021). "Just Five Months Old, Zillow Cofounder's Pacaso Claims It's Already A Unicorn". Forbes. Retrieved October 18, 2021.
- ^ Potter, Everett (June 27, 2021). "Pacaso Disrupting Vacation Home Ownership". Forbes. Retrieved October 18, 2021.
- ^ Lanhee Lee, Jane (September 14, 2021). "Home co-ownership platform Pacaso raises $125 mln in round led by SoftBank". Reuters. Retrieved October 18, 2021.
- ^ a b "Rascoff's Pacaso valults to unicorn status as greycroft invests". Bloomberg. March 24, 2021. Retrieved October 18, 2021.
- ^ Waldek, Stefanie (March 11, 2022). "The Newfangled Real Estate Companies Making Vacations Easier". Architectural Digest. Retrieved March 11, 2022.
- ^ Tan, Gillian (September 14, 2021). "SoftBank Vision Fund 2 Bets on Pacaso at $1.5 Billion Valuation". Bloomberg. Retrieved September 14, 2021.
- ^ "Real Estate Company Pacaso". nshoremag.com. May 11, 2022. Retrieved June 14, 2022.
- ^ a b c Rosalsky, Greg (August 24, 2021). "A Startup Is Turning Houses Into Corporations, And The Neighbors Are Fighting Back". NPR. Retrieved May 19, 2025.
- ^ Guo, Hao (March 19, 2025). "Innovative Co-Ownership Models Offer Promising Solution to California's Housing Crisis". Bay Area Council. Retrieved May 12, 2025.
- ^ Reilly, Claire (March 11, 2025). "Silicon Valley's new disruption: Sharing your second home". Axios. Retrieved May 19, 2025.