The annual survey of private residence clubs and fractional real estate interests from Ragatz Associates shows total sales of about $624m in 2022. This amount includes new closed sales, presales, and in-house resales at fractional resorts and developments and is the highest sales level in the last 13 years. .
The breakdown of these 2022 North American sales is shown in the table below:
|Private Residence Clubs||$584m|
In the table above, 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.
The total sales number of $624m is 26% above the (revised) 2021 numbers. The highest sales of $1,687m were back in 2007.
To calculate these numbers, Ragatz reached out to 329 fractional interest projects and private residence clubs (prc). Of the 329 developments only 28 actually made some sales in 2022. Most of the inactive developments are older, sold-out fractional interest projects. Of the 28 active developments, 10 are fractional interest projects (product selling for less than $1,000 per square foot) and 18 are private residence clubs (product selling for more than $1,000 per square foot ).
Ragatz notes that "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." As in other recent years there were a few (five in 2022) private residence clubs that made much larger sales than the others, and if these are excluded the average for the other 13 drops to $4.5m. In other words, the five large projects averaged sales of over $100m each in 2022.
The most common share size in the fractionals is 1/5th to 1/8th (6 to 10 weeks of ownership) and for the prcs is 1/8th to 1/10th (so about 5 to 6 weeks of use each year). The most common configuration, 62% of the units, is 2- and 3- bedrooms with an average unit size of 1,835 square feet and the average shared-ownership project will contain 34 units.
Prices vary widely between projects. For fractional interest projects the average prices are $182,500 per share, equivalent to $25,600 per week and $675 per square foot. For private residence clubs, these averages are $323,800 per share, $67,575 per week, and $1,650 per square foot. Annual maintenance fees average $10,425 per share, ranging from $5,750 among fractional interest projects to $12,650 among private residence clubs.
The full report, with more detailed analysis, is available at the Ragatz Associates website for $500.
Note, the Ragatz Report covers resort type developments with multiple fractional units. It does not cover the various forms of shared ownership of standalone single family homes. The latter include residence funds or equity destination clubs, like Equity Residences, HomeSlice and Destination M, that buy and share multiple homes amongst owners, and newer programs, like Pacaso that enable sharing of individual homes.