yego.me
💡 Stop wasting time. Read Youtube instead of watch. Download Chrome Extension

How AirBnb will Crash the Housing Market


less than 1m read
·Nov 7, 2024

Here's how Airbnb could crash the U.S. housing market.

There are over 1 million properties listed on Airbnb here in the United States. In recent years, there's been a huge trend of small investors buying single-family houses to then list on short-term rental sites like Airbnb. Owners of these properties have made a ton of money over the past two years as demand for travel has been strong.

Oh, but things are changing. Consumers are getting hit with inflation, and consumers have less savings to spend on luxuries like travel. Many owners of these properties use a special type of loan to make this investment: a vacation property loan. These loans only require as little as five percent down compared to the normal investment property loan of 25 percent down.

If bookings slow down from historical highs, these small-time investors could quickly drain their reserves. Assuming even one-third of the million Airbnb properties have to be sold, that will more than double the supply of housing units on the market from Spring of 2022 levels.

This much inventory flooding the market, combined with the highest mortgage interest rate in decades, will put downward pressure on the housing market. Check out the full video on my channel for more. It's linked in the comments and video description here.

More Articles

View All
Importance of Data Security | Internet safety | Khan Academy
I’m going to make a bold prediction. You probably don’t like people stealing your identity, which allows them to steal your money or maybe tell the whole universe what you’re up to, and being able to track you and your family and compromise your security…
What I Spend In A Week As A Millionaire
What’s up, guys? It’s Graham here! So if you haven’t noticed, we have an exciting new trend going around here on YouTube, and this is so perfect for me, I swear. It’s called “What I Spend in a Week.” It’s where people go and document their normal everyday…
Sign convention for passive components | Electrical engineering | Khan Academy
Today we’re going to talk about the sign convention for passive components. It’s a big mouthful, but it’s a fairly simple idea. So first of all, let’s look at this word: passive. Passive is the way we describe components that do not create power or compo…
how to ACTUALLY CHANGE your life in 2023 (step by step guide)
We all experienced failure at some point in our lives. Maybe you didn’t get that promotion you were hoping for, or you didn’t accomplish a personal goal you set for yourself. But for some reason, when it gets closer to New Year’s, we tend to be more hopef…
Growth Mindset: Khan Academy's Director of U.S. Content on academic belonging
My name is Brian John Jude and I manage the arts, humanities, and social science curriculum here at Khan Academy. I was the first person in my family to attend college, and I remember my freshman year. The first course I was taking was in literature and …
Exploring Rodeo, Masculinity Through Photography | National Geographic
(Western music) (cow mooing) - I’m a contributing photographer to National Geographic Magazine. I relentlessly want to understand things, and particularly things that are not part of my sort of orbit of perception. (twangy Western music) (shouting) I’m in…