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.

Warren Buffett is Selling Stocks and the Reasons Behind it are Terrifying

Homeroom with Sal & Jeffrey Rosen - Thursday, September 17

View All

How Startup Fundraising Works | Startup School

Foreign [Music] I’m Brad Flora. I’m a group partner here at YC, and I’m going to be talking about how startup fundraising works today. Like I said, I’m a group partner at YC, and what that means is that I read applications, I interview the startups that …

Graphs of rational functions: y-intercept | Mathematics III | High School Math | Khan Academy

Let F of x = A * x^n + Bx + 12 over C * x^m + Dx + 12, where M and N are integers and A, B, C, and D are unknown constants. All right, this is interesting! Which of the following is a possible graph of y equal F of x? They tell us that dashed lines indic…

Take Accountability to Earn Equity

Accountability is important because that’s how you’re going to get leverage. That’s how you’re going to get credibility. It’s also how you’re going to get equity. You’re gonna get a piece of the business when you’re negotiating with other people. Ultimat…

Example constructing a t interval for a mean | Confidence intervals | AP Statistics | Khan Academy

A nutritionist wants to estimate the average caloric content of the burritos at a popular restaurant. They obtain a random sample of 14 burritos and measure their caloric content. Their sample data are roughly symmetric, with a mean of 700 calories and a …

The development of an American culture | AP US History | Khan Academy

In this video, I’m going to take some time to talk about the culture of the young United States that developed in the early 19th century. At the beginning of this period, most of the dominant artistic and cultural productions in the United States—the pain…

You Can Do More Than You Think | The Growth Mindset

Probably most people know the story about the turtle and the rabbit, in which the rabbit laughed at the turtle because of his slowness. But to his surprise, the turtle challenged the rabbit to a race. Initially, the rabbit thought the turtle was joking, b…

How AirBnb will Crash the Housing Market

More Articles