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
What was the Gilded Age? | US History | Khan Academy
So what was the Gilded Age and why did it happen? Ah, the Gilded Age is this fascinating period from about 1870 to 1900. You can change the dates a little bit, but that’s… so we’re talking post-Civil War America, which becomes an industrial powerhouse. Th…
Policy | Vocabulary | Khan Academy
Hello wordsmiths! The word we’re featuring in this video is policy, which means an official rule or set of rules. It’s a noun. It comes from the Greek word polis, which means city. As a root, it has to do with cities and government. I live in Washington,…
Warren Buffett's 7 Rules to be a Great Investor
Price people are really strange on that. I mean, they cause most people, most, most, your listeners are savers, and that means they’ll be net buyers, and they should want the stock market to go down. They should want to buy at a lower price, but they’ve g…
I Took an IQ Test to Find Out What it Actually Measures
In popular culture, the term IQ is everywhere. Do IQ exams do that? You probably need 120 points of IQ. Don’t know what my IQ is. And IQ. IQ. IQ. Low IQ individual. People who boast about their IQ are losers. When people say IQ, what they mean is intell…
Tigers 101 | National Geographic
With their signature orange fur and black stripes, tigers have become icons of beauty, power, and the importance of conservation. Tigers have evolved into six subspecies. The tiger’s tale of evolution can be traced back to about two million years ago when…
Manifest Destiny | Period 5: 1844-1877 | AP US History | Khan Academy
This is a print showing San Francisco Harbor in 1848. There’s a little smattering of houses and a few boats in the water. It looks pretty peaceful, and it was. San Francisco only had about a thousand residents, and California had only newly become a U.S. …