The landscape of second home ownership is changing rapidly, with innovative models offering the joy of multiple residences without the traditional headaches.

The dream of owning a second home has long been embedded in our collective imagination – a place to escape, to create memories, to put down roots beyond our primary residence. But with soaring property prices, increasingly complex regulations, and the growing awareness of the inefficiency of properties sitting vacant for much of the year, savvy families are seeking alternatives.

The market has responded with innovative models that deliver the essence of what makes second homes special while eliminating many of the pain points. If you've been contemplating a holiday home purchase in 2025, it's worth understanding these alternatives before signing on the traditional dotted line.

Residence Clubs: The Evolution of Fractional Ownership

The residence club model has matured significantly since its early associations with timeshares. Modern iterations offer deeded ownership interests in specific, typically high-end properties with sophisticated sharing arrangements.

Pacaso has become a leader in the co-ownership model for luxury vacation homes since its founding in 2020. The company offers shared fractional ownership of high-end second homes as an alternative to traditional ownership. Members purchase an ownership share (typically 1/8) of a specific property, gaining access for several weeks per year with all maintenance handled professionally.

In Europe, Fractal is a London-based fractional ownership platform that raised $30m and makes it easy for consumers to purchase homes in major European cities. The company focuses on Middle Eastern, North African and other high-growth markets, offering fractional ownership in prime European locations.

Palazzo Ricci in Italy represents the luxury end of the residence club model, with fractional ownership shares ranging from 1/5th to 1/12th of luxury properties. Prices range widely from $50,000 to more than $1.5 million, depending on variables like local real estate values, location, number of personal weeks, and level of luxury.

Best For: Those who want a consistent second home experience with a sense of ownership but reduced financial and operational burdens.

Destination Clubs: Prioritising Experiences Over Assets

While residence clubs focus on fractional ownership, destination clubs emphasize access and experiences over equity. Members typically pay an initiation fee and annual dues for access to a curated portfolio of properties without any ownership stake.

Inspirato manages hundreds of luxury vacation homes in beach, mountain and metropolitan destinations around the world. The Club membership has an initial fee of $15,000 and then $6,000 in subsequent years, with daily rates starting from under $500 for smaller homes in low season, ranging to over several thousand dollars a night for larger homes at peak holiday times.

For those seeking unlimited travel, Inspirato Pass offers a subscription model at $31,900/year that includes access to approximately 1 million Pass Trips in 100+ destinations around the world, with nightly rates, taxes, and fees included.

Exclusive Resorts has been operating since 2002 as a members-only vacation club designed for families who value privacy and peace of mind, with nearly $1 billion in private homes and experiences worldwide. The club delivered 19,000 vacations in 2024, showcasing the scale of their operations.

Cabo Real Surf Club represents a cutting-edge approach to luxury resort community ownership in Los Cabos, Mexico. Developed by Meriwether Companies within the established 3,000-acre Cabo Real masterplan, this first-of-its-kind private residential community features North America's first Endless Surf wave basin complemented by a Robert Trent Jones II championship golf course.

The community is currently under construction and scheduled to open in 2026, with a successful Founders sales launch achieving over $50 million USD in homesite sales in early 2024. Membership is reserved exclusively for real estate owners, with newly available offerings including custom Estate Lots, Villa Homesites with four and five-bedroom plans, and Surf Casitas priced from $2.5 million USD. The club offers extensive amenities including a private oceanfront beach club, state-of-the-art fitness facilities, racquet sports centre, and mountain biking trails.

This model represents the evolution of what has become commonplace in the golf resort world - blending luxury experiences with ownership and investment opportunities. Resort communities have long understood that combining world-class amenities with real estate ownership creates compelling value propositions for affluent buyers seeking both lifestyle and financial benefits.

Best For: Experience-seekers who value variety and curated adventures over building equity in a single location.

Equity Clubs: The Investment-Minded Alternative

For those with both wanderlust and investment goals, equity clubs offer an intriguing proposition. Members invest in a fund that purchases multiple properties, with usage rights distributed among investors and the potential for financial returns when properties are sold.

Equity Estates has launched a series of funds, raising over $300m in total. Their latest Fund VII launched in January 2025, with plans to buy twelve vacation homes, with each residence costing between $3.5 and $6.5 million in destinations including Deer Valley UT, Turks and Caicos, Hawaii, London, Naples FL, and Palm Beach FL.

Equity Residences structures its funds to be a financial investment while providing lifestyle benefits, with funds having a 10-year liquidation horizon. Fund investors occupy the homes about 35% of the time while the fund managers rent them out for another 35% of the time, with rental income offsetting operating costs meaning typically low to no annual dues for investors.

Equity Residences recently launched the Equity Euro Fund, raising €33 million to acquire 12 luxury homes in Europe's most sought-after locations including destinations like Bordeaux, Dubrovnik, Algarve, San Sebastian, Madeira, Nice/Cannes, Sardinia, and Innsbruck.

Best For: Financially-motivated second home seekers who want to combine lifestyle benefits with investment potential.

Community Ownership Models: The Co-op Approach

Perhaps the most interesting development in recent years has been the emergence of community ownership structures that blend elements of cooperatives with vacation home networks, giving owners more direct control over their properties and experiences.

August offers a unique co-ownership model focused on European properties, where members own collections of 4-5 homes rather than shares in individual properties. For a share starting at €405,000, co-own five incredible homes each worth an average of €1.7M in destinations across France, Italy, Spain, and the UK. Each owner receives a minimum of 12 weeks per year across all homes in their collection, with access managed through a proprietary booking system.

What sets August apart is their comprehensive approach - they handle acquisition, renovation, design, and ongoing maintenance of all properties. August brings together like-minded homeowners who are interested in Holiday home Co-Ownership through established real estate entities to guarantee authentic ownership. The company has been operating since 2019 and has successfully established multiple collections, with a liquid secondary market where shares often sell within weeks.

21-5, the Danish pioneer of this model, takes an elegantly simple approach: 21 families own and share 5 unique holiday homes. Operating since 2011, 21-5 has established more than 60 associations and purchased more than 300 properties, mainly in Southern Europe - Italy, France and Spain. Each family gets approximately 12 weeks of holiday time per year across the portfolio.

The 21-5 model gives owners significant control over their investment decisions. They have control over the investment and can collectively decide when to liquidate a property and replace it with a new home elsewhere, operating more like a traditional co-op structure where members have direct input on major decisions.

Best For: Community-minded individuals who value connection, direct involvement in property decisions, and access to multiple European destinations.

Sustainable Access Programs: The Eco-conscious Alternative

A newer category emerging addresses the environmental concerns around second homes. These programs focus on sustainable properties with minimal environmental footprints, often in locations that benefit from thoughtful tourism.

The ARK in Costa Rica offers fractional ownership in a regenerative community set in the lush hills of Santa Teresa. Starting from just $22,000, owners purchase shares in a company that holds title to an entire 5,000 m² (1.2-acre) property with 8 homes, a shared pool, and a community garden. Each share grants 4 weeks of use per year, with the option for passive income through rental management when not in use.

What makes The ARK unique is its focus on regenerative living and community building. The project emphasises sustainable practices while providing a pathway to Costa Rican residency - purchasing 7 or more shares (minimum $150,000 investment) qualifies buyers for Investor Residency. All rental activity is fully managed by The ARK, including guest communications, bookings, cleaning, and profit distribution.

Best For: Environmentally-conscious travellers who want their second home experience to have a positive impact.

How to Choose the Right Model for Your Family

With so many options available, how do you determine which alternative best suits your needs? Consider these factors:

Financial goals: Are you looking to build equity, or is access to experiences your priority?
Desire for variety: Do you want the same destination repeatedly or crave new adventures?
Level of involvement: Do you want to actively participate in property decisions or prefer a hands-off approach?
Community connection: Is building relationships with fellow members important to you?
Legacy planning: Are you looking to create a multi-generational asset or focus on present experiences?

The old binary choice between full ownership and rentals has given way to a spectrum of thoughtful alternatives. For today's families, the question isn't simply whether to buy a second home, but rather which ownership model creates the right balance of experiences, investment potential, and hassle-free enjoyment.

After all, what we're really seeking isn't the deed to a property – it's the backdrop for our most meaningful connections and memories. The smartest approach is the one that delivers that essence most effectively for your unique situation.

Beyond Traditional Ownership: The New Wave of Second Home Alternatives