New Startup Introduces Leasehold Model to Lower Entry Barriers for US Homebuyers

San Francisco-based startup Jubilee Homes is introducing a leasehold-style approach to homeownership in the United States, offering buyers a way to purchase a house without owning the land beneath it. The company is positioning the structure-and-land split as a tool to reduce upfront barriers, particularly in expensive markets where land can represent a large share of total property value.

The model relies on a concept widely used outside the US. Leaseholds are common in countries including the UK and Singapore , where buyers may own a home or apartment for a defined period while the land remains under separate ownership. Jubilee Homes is applying that framework to US housing, arguing that separating the cost of the structure from the land can make the initial purchase more attainable for households priced out of conventional transactions.

Jubilee Homes is also part of a broader wave of so-called fractional ownership startups. In these arrangements, a company partners with a homebuyer and takes an ownership stake in the property, with the investor participating in any future appreciation. The mechanism described involves the company working alongside the buyer and, in many cases, acquiring a significant share of the home, creating a shared-equity pathway that sits between renting and traditional ownership.

The pitch to consumers is that the approach can help households begin building equity sooner than they otherwise could. Supporters describe it as a structure that can align incentives: buyers gain access to a home with a lower entry cost, while investors gain exposure to residential property values. Jubilee Homes and similar firms are presenting the model as a response to affordability pressures that have made standard homeownership harder to reach for many would-be buyers.

Consumer advocates, however, have urged caution about how these products are understood and how costs and benefits are distributed. Sharon Cornelissen, director of housing for the Consumer Federation of America , warned that consumers may not fully grasp the financial implications. She also raised concerns that buyers could end up responsible for most ongoing homeownership expenses even as investors capture a large portion of the upside.

The affordability challenge is especially visible in high-cost regions where land values can dominate the price of a home. The source material cites the Los Angeles metro area as an example, noting that land value can exceed 60% of a property’s total price. Jubilee Homes is explicitly targeting this dynamic by removing land ownership from the initial purchase, aiming to lower the amount a buyer must finance or fund upfront.

Even as interest grows, the longer-term effects for consumers and the housing market are still being examined. The model’s expansion would matter not only for US buyers and investors, but also for global capital that tracks residential real estate as an asset class, given the international familiarity of leaseholds.

For now, Jubilee Homes is presenting leaseholds and shared-equity structures as one more route into ownership, while questions about consumer outcomes and market-wide consequences remain under scrutiny.