Pacaso Faces Backlash To Selling Fractional Home Ownership : The Indicator from Planet Money A real estate startup says it's the fastest company in American history to achieve a billion-dollar valuation, but the neighbors aren't buying what they're selling: fractional home ownership.

The Unicorn Next Door

The Unicorn Next Door

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Brad Day/Brad Day
A sign protesting real estate startup Pacaso purchasing a house in a Sonoma Valley California neighborhood is displayed on the windshield of a sage green car. A neon yellow poster board reads, &quot;The Pacaso house is the big one on the right with no soul.&quot; A rectangular, white house stands in the background against a blue sky.
Brad Day/Brad Day

A $4 million house located in a tranquil cul-de-sac in the Sonoma Valley has become the focal point of an ugly real estate fight. On one side, Pacaso, a startup that achieved a billion-dollar valuation quickly on the premise it could make second home ownership more accessible. The venture capital-backed startup converts houses into corporations and sells shares of these houses on its website.

On the other side are the people in the neighborhoods where Pacaso has bought homes. They say the concept does not seem new, and is in fact just a dressed-up version of a timeshare. The neighbors want Pacaso out. At the heart of the disagreement is who should own a house and how they can use it.

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