{"id":33011,"date":"2018-10-11T17:24:53","date_gmt":"2018-10-11T14:24:53","guid":{"rendered":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/?p=33011"},"modified":"2025-08-28T12:46:01","modified_gmt":"2025-08-28T09:46:01","slug":"the-pros-and-cons-of-timeshares","status":"publish","type":"post","link":"https:\/\/www.propertyshark.com\/Real-Estate-Reports\/2018\/10\/11\/the-pros-and-cons-of-timeshares\/","title":{"rendered":"The Pros & Cons of Timeshares: Evaluating Shared Vacation Ownership"},"content":{"rendered":"\n

Editor\u2019s Note: This article was updated on August 28, 2025.<\/strong><\/em><\/p>\n\n\n\n

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 \u2014 especially in popular destinations \u2014 than paying for separate resort\/hotel stays long-term.\u00a0<\/p>\n\n\n\n

However, like any major purchase, buyers need to thoroughly consider timeshare advantages and disadvantages before signing on the dotted line.\u00a0<\/p>\n\n\n\n

<\/span>What Is a Timeshare?<\/span><\/h2>\n\n\n\n

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.\u00a0<\/p>\n\n\n\n

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.\u00a0<\/p>\n\n\n\n

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.\u00a0<\/p>\n\n\n\n

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\u2019s 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.\u00a0<\/p>\n\n\n\n

According to a recent study by ARDA<\/a>, the timeshare industry remains robust throughout 2024. The U.S. market generated $10.5 billion in sales<\/strong>, with an average transaction price of $23,160, while occupancy also rose to around 80%, <\/strong>higher than hotel level occupancy.\u00a0<\/p>\n\n\n\n

<\/span>Who Owns Timeshares?<\/span><\/h2>\n\n\n\n

A different ARDA research<\/a> showed that timeshare ownership is widespread, with nearly 10 million U.S. households owning one or more timeshare products.\u00a0<\/strong>\u00a0<\/p>\n\n\n\n

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.\u00a0<\/p>\n\n\n\n

Conversely, Millennials long resisted timeshares, especially as they struggled with high housing costs. However, the post-pandemic vacation market\u2019s 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.\u00a0<\/p>\n\n\n\n

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.\u00a0<\/p>\n\n\n\n

<\/span>What Is the Average Cost of a Timeshare per Year?<\/span><\/h2>\n\n\n\n

The average cost of a timeshare per year is typically between $300 and $400 and represents the owner\u2019s annual fees for maintenance, utilities and taxes for the most common setup of one week per year.\u00a0<\/p>\n\n\n\n

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\u2019s 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.\u00a0<\/p>\n\n\n\n

Furthermore, while annual fees cover regular maintenance, they don\u2019t cover the cost of major repairs or upgrades, nor do they cover the timeshare property\u2019s mortgage (should there be one).\u00a0<\/p>\n\n\n\n

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.\u00a0<\/p>\n\n\n\n

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.\u00a0<\/p>\n\n\n\n

<\/span>What Are the Pros and Cons of Timeshares?<\/span><\/h2>\n\n\n\n

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.\u00a0<\/p>\n\n\n\n

Of course, as with any major purchase, there are advantages and disadvantages of owning a timeshare.\u00a0<\/p>\n\n\n\n

<\/span>Pros of owning a timeshare:<\/span><\/h3>\n\n\n\n