The Shared Ownership Real Estate Industry Report 2023

Ragatz Associates’, a leading real estate market research firm, has released their 22nd annual survey of the fractional interest industry in North America, including the United States, Canada, Mexico and the Caribbean. The report describes the industry’s performance in 2022 from projects in active sales, including sales volume, prices, product characteristics, comparisons with previous years, etc. and is recognized as the most comprehensive survey of the industry available.   

The company provided this summary of the report:






This document is an Executive Summary of a larger survey conducted by Ragatz Associates of  the shared-ownership resort real estate industry in North America as of February 2023. Included in  this overall sector of the resort real estate industry are two components: fractional interest projects and  private residence clubs. Destination clubs are not included. This is because information received from  the few remaining clubs has been questionable in terms of accuracy, as well as limited in scope. 

Fractional interest projects and private residence clubs are similar, in that both typically sell  deeded ownership in shares of vacation homes, ranging from a 1/21 share with two weeks of annual  use to a 1/4 share with three months of annual use. However, the two components vary in terms of  price, quality of product and degree of services and amenities. Ragatz Associates simply assumes that  product selling for less than $1,000 per square foot falls into the fractional interest category, and  product selling for more than $1,000 per square foot falls into the private residence club category.   A destination club typically sells 30-year memberships on a non-equity basis into a wide  network of vacation homes in multiple locations. Some clubs are equity-based, however. The concept  is further characterized by a refundability policy when members leave the club. And, some are rental  clubs. Again, they are not included in the survey.  

 The survey represents our 23rd annual edition. Once again, it is thought to be the most  thorough and comprehensive survey conducted of the industry.  

Size of the Industry  

Some 329 fractional interest (FI) projects and private residence clubs (PRC) were identified in  the survey. Of the 329 developments, 28 actually made some sales in 2022. The 28 FI and PRC  projects are the primary focus of the survey.  

Included in the 329 developments are 66 percent in the United States, 16 percent in Canada,  eight percent in the Caribbean and 10 percent in Mexico. The two states of Colorado and California  contain 19 percent of all developments. Of the 28 active developments, 36 percent are fractional  interest projects and 64 percent are private residence clubs. Most of the 301 inactive developments are  older, sold-out fractional interest projects.  

There were 28 active projects making sales in 2022. Between 2021 and 2022 there were two  new projects, seven projects attaining sell-out, and one stopping sales.  

It is estimated that total sales volume in the fractional interest and private residence club  industry in 2022 was about $624 million. This amount includes new closed sales, presales, and in house resales. When looking at the two individual components, sales volumes were $40 million for  fractional interest projects (six percent) and $584 million for private residence clubs (94 percent).  Some 36 percent of the 28 active projects were fractional interests, but they generated only six percent  of the total sales volume.  

It is important to note that the sales volume in 2022 was the highest in the last 13 years when it  was $665 million in 2009. During the 12 years between 2010 and 2020, the sales volume was quite  consistent, ranging from $175 million in 2017 to $349 million in 2010, and averaging $234 million.  These years were significantly down from the peak pre-recession years of 2007 ($1.7 billion) and 2008  ($1.2 billion). The first significant increase since those peak years was in 2021 at $495 million, and  now bumping up to $624 million in 2022. Hopefully, the industry’s performance in the past two years  will be continued and increased as we move forward.  

In 2022, the average annual sales volume in the 28 active projects was $4.1 million for  fractional interest projects and $32.5 million for private residence clubs. However, if excluding the top  five private residence clubs, the average for that component would decline to $4.5 million. If excluding  the top three selling fractional interest projects, the average for that component would drop to  $910,000. Of the total 28 active projects, 25 percent had sales over $10 million, while 21 percent had  sales of less than $1 million.  


Prices in the shared-ownership industry range widely. For fractional interest projects, average  prices include $182,500 per share, $25,600 per week (when dis-aggregating shares to an individual  weekly basis), and $675 per square foot. Among private residence clubs, these averages are $323,800  per share, $67,575 per week, and $1,650 per square foot. Per week and per square foot prices tend to  decrease as the size of the unit and share increase. In comparison with 2020, average prices increased  by $19,725 per share (eight percent), and $2,765 per week (five percent). They decreased by $175 per square foot due to a few new lower priced projects. When compared to the peak year of 2007, per share  prices have increased by six percent, per week prices by 15 percent and per square foot prices by 15  percent.  

Per square foot prices vary significantly by country, e.g., from $75 in Canada, to $1,175 in the  Caribbean, to $1,350 in Mexico, to $1,425 in the United States. They also are higher in ski  communities and at developments offered by branded hotel companies.  

Annual maintenance fees average $10,425 per share, ranging from $5,750 among fractional  interest projects to $12,650 among private residence clubs. On a per week basis, such averages are  $890 and $2,550, respectively.  

Operating costs (including marketing, sales and general administration) were about the same in  2021 compared to previous years, at about 15 to 20 percent of the overall sales volume. Product costs  were about 50 to 55 percent.  

Product Characteristics  

Upon completion, the average shared-ownership project will contain 34 units. Some 62 percent  of the units are either two-bedrooms (35 percent) or three-bedrooms (28 percent). Among all units, the  average size is 1,835 square feet.  

There are at least nine different sizes of shares being sold. Most frequent sizes for fractional  interest projects are in the 1/8 to 1/5 range (70 percent). For private residence clubs they are in the  1/10 to 1/8 range (64 percent). In efforts to have lower prices in accord with declining market  conditions, there was a tendency in 2022 (as in recent years) to have smaller shares and fewer  bedrooms.  

On-site amenities and services are extensive in the industry, especially at the private residence  club level. However, there was a continuing trend in 2022 (as in recent years) to have fewer on-site  services in order to conserve on annual dues. At the same time, there was a trend to provide more  owner benefits such as rental and resale programs, and external exchange.  

Future Trends  

It is felt that the shared-ownership components will continue to rebound in the future. Reasons  include being a concept that is based on: (1) personal use rather than speculation; (2) being able to  purchase only the amount of time that have vacations to use and discretionary income on which to  spend; (3) lowering household spending habits and capabilities; (4) being hassle-free, i.e., “show up  and enjoy;” and (5) the opportunity for flexibility and variety of use due to the external exchange  process.  

Based on 49 years of experience in the resort real estate industry, we expect shared-ownership  to once again be on a growth track as the national economy further improves, and as families seek  locations to escape urban disamenities.  

The complete report is available for purchase from Ragatz Associates at

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