Meddling with what it means to be a homeowner is a recipe for attention — good and bad — and Pacaso has certainly grabbed more than its share of headlines. Investors, jazzed by the second-home market’s potential, put over $200 million into the startup over the past two years. But Pacaso also became a lightning rod for criticism from regulators and neighbors, who’ve criticized its model as damaging to communities.
Austin Allison, co-founder and CEO of Pacaso, recently sat down with The Real Deal‘s Hiten Samtani for an extended conversation about the model and the state of his company. They discussed how the startup is grappling with whiplash in the housing market and how it’s working with regulators and officials to create a model that’s palatable to its local communities. The business is still tiny, particularly in light of how much capital it has raised — Pacaso recently sold its 1,000th share of a home — but Allison believes the upside is massive.
“Seventy-five percent of people above a certain income threshold aspire to own a second home,” he said. “So we’re talking tens and tens of millions of people, and most people are unable to afford or unable to justify owning the whole thing because the average usage is only five weeks per year.”
The two discussed Pacaso’s revenue models, its talks with investors and the evolution of second-home co-ownership. Catch the highlights in the video above or read the full conversation here. And watch more of Hiten’s interviews with those making a dent in the real estate business here.
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Residential
New York
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