by Margaret Jackson

The high cost of housing and rising interest rates are making fractional homeownership an appealing option — especially among the younger generation.

Seven out of 10 Americans believe that young adults have a more difficult time buying a house and saving for their futures than their parents did, according to a Pew Research Center survey.

Fractional buying and investing are expected to be among the trends for 2023, according to Daniel Smith, founder of the startup Keepingly, a centralized home management platform empowering homeowners at each stage of the homeownership experience.

“People are looking at their options and pooling together with somebody to make sure they can pay the mortgage and all the other bills — taxes, insurance,” Smith said.

Fractional real estate ownership is when a person splits the cost of a home purchase with several people, giving each a percentage of the ownership of the property.

Fractional ownership is different than a timeshare. When you buy a timeshare, you’re purchasing a specific amount of time to spend at the property. With fractional ownership, you’re buying equity.

Affordability is Key

The benefits of fractional ownership are that it’s more affordable than traditional ownership, it can provide a steady income stream, and you can get involved in higher-end properties.