High Costs Drive Rise in Fractional Property Ownership as Shared Models Provide More Affordable Access

The high cost of credit and construction has triggered a rise in fractional property ownership in recent years. With mortgage rates and building expenses increasing, many potential homebuyers and investors are turning to shared ownership models to access real estate. Fractional ownership allows multiple parties to purchase a percentage of a property, reducing the upfront capital required. This trend is particularly evident in the vacation home and urban residential markets, where fractional ownership provides a more affordable entry point. While it limits individual control, fractional ownership enables diversification and participation in high-value properties that may otherwise be out of reach. As economic conditions make traditional real estate investment more challenging, fractional ownership has emerged as an attractive alternative for those seeking to enter the market.