Ragatz Associates’, a leading real estate market research firm, has released their 21st 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 2021 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 March 2022. 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 22nd annual edition. Once again, it is thought to be the most
thorough and comprehensive survey conducted of the industry.
Size of the Industry
Some 328 fractional interest (FI) projects and private residence clubs (PRC) were identified in
the survey. Of the 328 developments, 34 actually made some sales in 2021. The 34 FI and PRC
projects are the primary focus of the survey.
Included in the 328 developments are 67 percent in the United States, 16 percent in Canada,
nine percent in the Caribbean and eight percent in Mexico. The two states of Colorado and California
contain 19 percent of all developments. Of the 34 active developments, 44 percent are fractional interest projects and 56 percent are private residence clubs. Most of the 294 inactive developments are
older, sold-out fractional interest projects.
There were 34 active projects making sales in 2021. Between 2020 and 2021 there were seven
new projects, four projects attaining sell-out, and two stopping sales.
It is estimated that total sales volume in the fractional interest and private residence club
industry in 2021 was about $255 million. This amount includes new closed sales, presales, and inhouse resales. When looking at the two individual components, sales volumes were $31 million for
fractional interest projects (12 percent) and $224 million for private residence clubs (88 percent).
Some 44 percent of the 34 active projects were fractional interests, but they generated only 12 percent
of the total sales volume.
Sales volume at $255 million in 2021 was the highest in the past eight years, up from $198
million in 2019 and $179 million in 2020. The annual sales volume over the last 12 years has been
fairly consistent, ranging from $175 million in 2017 to $349 million in 2010, and averaging $234
million. In 2021, fractional interest projects increased by $11 million (55 percent), and private
residence clubs increased by $65 million (41 percent). The overall increase in the past year was a very
positive 42.5 percent.
In 2021, the average annual sales volume in the 34 active projects was $2.1 million for
fractional interest projects and $11.8 million for private residence clubs. However, if excluding the top
five private residence clubs, the average for that component would decline to $5.9 million. If excluding
the top four selling fractional interest projects, the average for that component would drop to $1.4
million. Of the total 34 active projects, 20.6 percent had sales over $10 million, while 29 percent had
sales of less than $1 million.
Prices in the shared-ownership industry range widely. For fractional interest projects, average
prices include $203,500 per share, $25,200 per week (when dis-aggregating shares to an individual
weekly basis), and $500 per square foot. Among private residence clubs, these averages are $352,150
per share, $66,500 per week, and $1,750 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 $28,475 per share (11 percent), and $3,565 per week (six percent). They decreased by $200 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 nine percent, per week prices by 17 percent and per square foot prices by 13
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 $1,400 in the United States. They also are higher in ski
communities and at developments offered by branded hotel companies.
Annual maintenance fees average $10,475 per share, ranging from $8,525 among fractional
interest projects to $12,050 among private residence clubs. On a per week basis, such averages are
$1,275 and $2,450, 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.
Upon completion, the average shared-ownership project will contain 28 units. Some 65 percent
of the units are either two-bedrooms (35 percent) or three-bedrooms (30 percent). Among all units, the
average size is 1,945 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 (73 percent). For private residence clubs they are in the
1/10 to 1/8 range (68 percent). In efforts to have lower prices in accord with declining market
conditions, there was a tendency in 2021 (as in recent years) to have smaller shares and fewer
On-site amenities and services are extensive in the industry, especially at the private residence
club level. However, there was a continuing trend in 2021 (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.
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
Based on 48 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: www.ragatzassociates.com.