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
Philosophies That Shaped Millions
Know how it goes: one day we’re born, one day we die. Everything that happens in between we know and understand, but everything that happened before and will happen after we know nothing about. As a result, it’s really difficult to say what exactly the me…
Physics Nobel Prize 2011 - Brian Schmidt
[Applause] There are few things in the world that seem more constant than the stars in the night sky. If you look up at the Milky Way, you will see the same thing that people have looked at for thousands and thousands of years. But as Professor Schmidt fo…
The Probability of Human Existence Is Infinitesimally Small
Here’s another way to think about it that is mathematically frightening for the people who think that the aliens are out there and they’re going to visit us at some time in the future. We were talking earlier about trillions of planets that exist througho…
Successful Pitch
These are the three attributes you find in every successful pitch. These are the ones that get a check, that actually start their journey funded on Shark Tank, that go into the ecosphere of Shark Tank, that get followed every year by all the networks, tha…
Sea Turtles Nesting in Costa Rica - 360 | National Geographic
Sometime around the last quarter moon, we typically see these large groups of turtles forming offshore and essentially wait for some cue. It’s like they’re all out there kind of wait for it, wait for it. At some point, hundreds of thousands of turtles sta…
The Race to Win Staten Island
Back in the long, long ago, New York and New Jersey fought over the islands betwixt them. Were they New York or were they New Jersey? To determine what was whose, New York proposed a race! All islands that could be encircled in less than 24 hours would be…