Vacancy rate is the percentage of time a property sits unoccupied during a given period, typically measured on an annual basis.
For traditional vacation homes, vacancy rates can be staggeringly high — many second homes sit empty 80% or more of the year while owners continue paying for mortgage, taxes, insurance, and maintenance. High vacancy is wasted money. In rental properties, vacancy rate directly impacts cash flow and return on investment. Reducing vacancy is one of the primary financial arguments for shared ownership models.
GoForth, a luxury co-ownership company, dramatically reduces vacancy by splitting each home among four ownership families who each use the property 12 weeks per year. That means the home is actively enjoyed for 48 weeks annually, compared to the handful of weeks a typical vacation home sees. Lower vacancy means every dollar spent on the home delivers more value, and the property stays better maintained through regular use.