The Pros & Cons of Timeshares: Evaluating Shared Vacation Ownership

Editor’s Note: This article was updated on August 28, 2025.

Often considered by the general public as a more cost-effective and convenient alternative to vacation homes, people interested in timeshares and vacation homes are a different set of consumers. For most customers considering the pros and cons of timeshares, the most attractive aspect is that they represent a more financially advantageous option for vacations — especially in popular destinations — than paying for separate resort/hotel stays long-term. 

However, like any major purchase, buyers need to thoroughly consider timeshare advantages and disadvantages before signing on the dotted line. 

What Is a Timeshare?

A timeshare is a property that has shared ownership and rights, as well as shared financial responsibilities. It can come in the form of a condo; apartment within an established resort; or a single family home, including luxurious villas with high-end amenities. Some timeshares may even include access to exclusive beaches, cars and boats. 

Notably, each buyer has an allotted period of time in which they can make use of the property or family of properties. The most common timeframe is one week, which also tends to be the minimum buy-in for timeshares. There are also options for longer timeframes, as well as buying into a point system in which the buyer converts their points into a specific number of days for their stay. 

You can even buy multiple timeshares within the same network or multiple networks. The timeshare market also includes a segment known as fractional timeshares, which cater to people who vacation four or more weeks annually. 

Additionally, most U.S. timeshares operate on a floating system, meaning that the buyer owns a non-specific week within a range of dates. As such, it’s important to note that each owner is responsible for reserving their preferred stay. Of course, for those looking for very specific dates (especially in peak seasons), booking the property well in advance is advised, as timeshares operate on a first-come, first-served basis. 

According to a recent study by ARDA, the timeshare industry remains robust throughout 2024. The U.S. market generated $10.5 billion in sales, with an average transaction price of $23,160, while occupancy also rose to around 80%, higher than hotel level occupancy. 

Who Owns Timeshares?

A different ARDA research showed that timeshare ownership is widespread, with nearly 10 million U.S. households owning one or more timeshare products.  

Timeshares are owned by a diverse range of individuals, including families, retirees and frequent travelers. Imported from the UK in the 1970s, timeshares became a popular acquisition, especially among Baby Boomers, with Gen Xers also attracted to the idea years later. 

Conversely, Millennials long resisted timeshares, especially as they struggled with high housing costs. However, the post-pandemic vacation market’s surging prices seems to have inspired this generation, as well, to take another look at timeshares. In fact, some reports suggest that well more than one-third of recent new buyers originated from this generational pool. 

Looking beyond generational differences, timeshares attract individuals who want the advantages and comforts of a fully furnished, home-like property complete with amenities like pools, fitness centers and spas, but without spending time on property maintenance. 

What Is the Average Cost of a Timeshare per Year?

The average cost of a timeshare per year is typically between $300 and $400 and represents the owner’s annual fees for maintenance, utilities and taxes for the most common setup of one week per year. 

However, shares or points targeting peak seasons, as well as larger shares (more than one week per year) or those at high-end resorts can reach annual fees of well above $1,000. It’s also important to note that the timeshare owner is liable for annual fees whether they made use of their timeshare property that year or not. 

Furthermore, while annual fees cover regular maintenance, they don’t cover the cost of major repairs or upgrades, nor do they cover the timeshare property’s mortgage (should there be one). 

Additionally, if the timeshare owner finances their initial purchase with a timeshare mortgage loan, instead of paying the initial buy-in costs upfront in a lump sum, they will also have to contribute monthly installments toward satisfying their timeshare mortgage. 

As for the initial buy in, it can start at just a few thousand dollars and rise into hundreds of thousands of dollars. According to the latest data from the American Resort Development Association, the average cost of a timeshare purchase in 2021 was just more than $24,000. 

What Are the Pros and Cons of Timeshares?

The pros and cons of timeshares can be blurred depending on the preferences, financials and life changes of a timeshare owner. For example, some timeshare owners enjoy spending some of their vacation time at the same location every year, whereas others may tire of it down the line. Similarly, sometimes owners view the initial buy-in costs as a financially savvy down payment for decades of vacations, while others may view it as an exorbitant cost that locks you into a specific contract and destination. 

Of course, as with any major purchase, there are advantages and disadvantages of owning a timeshare. 

Pros of owning a timeshare:

• Long-Term Vacation Savings for Frequent Travelers: Owning a timeshare can save significant amounts of money on hotel/resort stays in the long-term if you use the property every year; can enter it into an exchange program; allow friends and family to use it; or are willing to put in the effort to rent it out when you won’t be using it. 
• Access to Global Vacation Exchanges and Loyalty Perks: With the travel club approach of timeshares continuing to increase, many timeshare programs now offer the possibility for vacation exchanges to other properties, as well as loyalty programs that provide some savings or add-on experiences. Additionally, there are now international timeshare exchange platforms in which timeshare owners can swap the use of their timeshare property with another one from anywhere in the world. 
• Resort-Style Living with Premium Amenities: On average, timeshare units are larger than the typical hotel room and are furnished in a homelike manner, including multiple large bedrooms, a kitchen, living room and more. They’re also often located in popular vacation destinations and will usually offer access to resort-style amenities at no additional cost or at attractive prices. 
• Built-In Vacation Structure with Predictable Planning: Because timeshare owners are liable for annual fees whether or not they use their property, it offers an initial incentive for owners to actually go on vacation. For people who enjoy returning to the same location every year, the familiarity of a specific timeshare brand, or having preset dates well in advance, timeshares offer the comfort of going on vacation with minimal effort. 
• Potential to Rent Out and Recoup Some Costs: Although timeshares should never be purchased as an income-generating property, timeshare owners with stakes in popular or rising destinations and who are willing to put in the extra work can rent out their timeshare. 

Cons of owning a timeshare:

• High Upfront Costs and Limited Financing Options: Upfront costs can be prohibitively expensive for many potential customers, and traditional lenders usually don’t offer financing for timeshares. And, with current buy-in costs exceeding $24,000, interested buyers will often choose to finance through a timeshare mortgage company, which will create additional costs on top of the purchase price. 
• Limited Flexibility in Travel Destinations and Timing: Although there now are timeshare exchange programs and platforms, it’s not guaranteed that an exchange will be found. Plus, if one does appear, timeshares still limit the destination choices of owners. Even in the case of owners who have successfully enjoyed a timeshare for decades, major life events and lifestyle changes can easily make the timeshare incompatible with a new phase in life. For example, empty nesters and retirees may find themselves contracted to a property that is far too large and expensive to maintain. Or the location itself may present challenges in reaching it. 
• Unexpected and Rising Maintenance Fees: Because many timeshares are sold during extended timeshare presentations with aggressive tactics, many buyers make on-the-spot decisions to buy without considering long-term costs, like maintenance fees, utilities, management costs, upgrades and more. On the low end, these will add up to $300 to $400 per year but can easily surpass $1,000 annually. 
• Rapid Depreciation After Purchase: Unlike other types of real estate, timeshares depreciate in value immediately after purchase. That also applies to timeshares that operate on a point system with the purchasing power of points depreciating faster than their dollar equivalent. 
• Challenging Resale Market and Low Demand: Not only do timeshare values depreciate quickly, but the resale market is also oversupplied, thereby making it that much more difficult to sell your ownership or lease stake. Secondary market platforms have a large selection of timeshares selling for as low as $1 as owners try to reduce future annual fees, special assessments or mortgage costs. Few real estate professionals are familiar enough with the ins and outs of timeshares, making it challenging to sell even through a broker. On top of that, timeshare resale companies also charge a fee for their services. 

Pros & Cons of Timeshares

Pros	Cons
Vacation exchange	Limited flexibility
Long-term savings	Upfront costs
High-end amenities and services	Maintenance fees
Potential income generation	Depreciation
Guaranteed vacation/predictability	Difficulty selling

Giving Up Your Stake: Is it Easy to Get Out of Timeshare? 

No, getting out of a timeshare can be extremely challenging. For instance, if the timeshare developer or timeshare network doesn’t offer a deed buyback program, it can be difficult to give up your timeshare stake. Buyers are also hard to come because most new buyers prefer to purchase directly from the developer or timeshare network. 

Although it may be tempting to try to get out of a timeshare by forgoing annual fees, mortgage payments, or costs pertaining to major repairs or upgrades, these avenues can severely affect the owner’s finances and financial profile. 

Specifically, refusing to pay one or more of these fees and costs will result in foreclosure, which can have a major effect on your credit score in the long term; increase the difficulty of securing another loan; as well as increase the cost of future loans or credits. 

Additionally, unless state laws specifically prohibit it, the lender has the right to claim a deficiency. And, because the sale of timeshares is a difficult process and almost always results in a significantly lower sale price than what the delinquent buyer initially paid, sale proceeds from a foreclosure will often not be enough to cover what is owed on the timeshare mortgage, thereby resulting in a deficiency. 

As a result, the lender may sue or secure a court judgment to collect what is still owed by taking over your bank account or garnishing your wages, among other methods. 

While there are also companies now specializing in timeshare exits, these will likewise charge you for their services — and results are not guaranteed. Therefore, it’s important for timeshare owners who are looking to employ such a company to thoroughly research them as timeshare exits and the timeshare secondary market have a major issue with predatory practices and even scams. 

One of the most common risks associated with timeshares is that buyers are often locked into expensive, long-term commitments and faced with rising fees. This is why The Federal Trade Commission (FTC) has an important role in timeshare as it protects consumers and promotes fair competition by enforcing laws that prevent deceptive advertising, fraud, and unfair business practices across industries, including real estate and timeshare sales. 

In the U.S. one of the most recent regulatory changes is that the Federal Trade Commission (FTC) now enforces cooling-off periods and disclosure requirements, protecting buyers from high-pressure sales and unclear contracts.  

Are Timeshares Ever a Good Investment? 

No, timeshares are not a good investment from a real estate or equity perspective, which is the most significant downside of timeshares. Even a large percentage of timeshare professionals will advise that timeshares are not good investment properties because timeshares depreciate at the moment of purchase. 

That said, when viewed from the perspective of vacation savings, timeshares can be a good long-term investment, especially when compared to decades or even lifelong vacation hotel stays. 

Choosing the Right Timeshare: Shared Deeded Ownership, Shared Leased Ownership & Timeshare Point System Pros & Cons 

Though there are several possible legal structures for timeshare ownership, the two most common are shared deeded ownership and shared leased ownership. Even so, timeshare point systems are growing rapidly as a handful of timeshare developers and operators have taken over the sector. 

Shared Deeded Ownership Pros & Cons 

In a shared deeded ownership setup, each owner owns a percentage of the actual property. The owner will receive a property deed for their percentage of ownership based on how much time they have purchased. This type of timeshare ownership results in multiple deeds being issued for each property. 

For example, if one property was sold in one-week increments, then there will be 52 total property deeds, with each buyer owning 1/52nd of the property. 

Pros	Cons
Increased ownership rights	Ownership costs and responsibilities
Potential for appreciation/equity	Potential for disagreements and disputes
Ownership control and decision-making	Coordination and availability challenges
Potential rental income	Difficulty selling or exiting ownership

Shared Leased Ownership Pros & Cons

In a shared leased ownership setup, the developer holds the deeded title to the property and is the legal owner, while each timeshare owner holds a leased interest in the property. Each lease agreement then gives the owner access to their property for the timeframe agreed upon at purchase. Shared leased ownership generally expires after a certain number of years and can be difficult to transfer to another person. 

Put simply, a shared leased ownership setup is closer to a club membership than owning real property. It can also be referred to as right-to-use, vacation interval or certificate timeshare. 

Pros	Cons
Ownership duration flexibility	Ownership expiration and non-transferability
Lower initial cost	Potential for disagreements and disputes
No mortgage payments	Renewal uncertainty
Decreased maintenance responsibilities	Limited control and decision-making

Timeshare Point System Pros & Cons

A number of timeshare programs don’t offer ownership or the right to use a particular unit or even a specific resort. Instead, the buyer purchases timeshare points that can then be used at a variety of resorts owned by the parent company or in resorts that are part of a larger timeshare point exchange network. 

Pros	Cons
Increased flexibility	Exchange system complexity
Bonus benefits	Point devaluation

Timeshare FAQs

What Are the Downsides of Owning a Timeshare? 

There are many downsides of owning a timeshare, including: fast depreciation; increasing annual fees; decreased flexibility; difficulty reselling; limited decision power in what happens to the property; and a contractual obligation to pay fees, maintenance costs and utilities, even if the property isn’t used. 

Are There Any Advantages to Owning a Timeshare? 

There are many advantages to owning a timeshare depending on your lifestyle. Frequent travelers, families, retirees, and vacationers who like traveling to a specific destination every year (for example, a ski resort) greatly benefit from the long-term reduced costs of timeshare ownership versus cumulative hotel bills. 

What Are the Top Trends for Timeshares in 2025? 

Resorts are diversifying beyond beaches to include mountain, urban, and theme park-adjacent destinations. Developers are also investing heavily in amenity upgrades—such as wellness centers, enhanced concierge services, and smart-home integration—to stay competitive 

Disclaimer

Information provided on this page is purely informational. It is not and should not be regarded as investment advice.