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
The REAL cost of owning a Cirrus Vision Jet
The Cirrus Vision Jet is a really impressive aircraft… on paper. It’s got a range of 1,275 nautical miles; that’s the equivalent of Melbourne to Ali Springs, London to Greece, even New York to Dallas. It can cruise over 310 knots. It’s got state-of-the-ar…
Two Chapters From Our New Book – Exclusive Preview!
Hello everybody! Today we’re doing something different: an exclusive preview. We’ll listen to the introduction and a chapter from the KTZ Gazar book Immune: A Journey into the Mysterious System that Keeps You Alive, written by KTZ Gazar founder and headwr…
The Timbuktu Job | Explorer
When Al-Qaeda invaded Northern Mali, it was only a matter of time before they started burning books. But in Timbuktu, one librarian decided he couldn’t let thousands of years’ worth of history and literature be destroyed without a fight. There was nothing…
Economic models | Basic economics concepts | AP Macroeconomics and Microeconomics | Khan Academy
When you think about what the field of Economics is about, it is quite daunting. An economy is made up of millions, or even billions, of actors organized in incredibly complex ways. This is a complex real world, and each of the actors—human beings or orga…
The Fermi Paradox II — Solutions and Ideas – Where Are All The Aliens?
There are probably 10,000 stars for every grain of sand on Earth, in the observable universe. We know that there might be trillions of planets. So where are all the aliens? This is the Fermi Paradox. If you want to know more about it, watch part one. Here…
The Power of Leverage
Last piece of making money is you have to have leverage. Leverage is critical. Leverage, you know, Archimedes famously said, “give me a lever long enough and a place to stand, and I will move the Earth.” That was a very powerful statement where he was bas…