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
Capital by Thomas Piketty | Macroeconomics | Khan Academy
Thomas Piketty’s Capital in the 21st Century has been getting a lot of attention lately because it’s addressing an issue that matters a lot to a lot of folks: the issue of income inequality and wealth inequality. My goal here isn’t to have a view on the b…
James Cameron on Exploration of Deep Sea and Space | StarTalk
So it’s not just you’re interested in the oceans or space; you’ve touched and been touched by engineering and technology. There was a lot about the cameras used for Avatar, but you go farther back than that. Well, yeah, just, I just love engineering. I l…
Carrot Sharpener. LÜT #27
Why would anybody peel a carrot when they could use an oversized pencil sharpener built just for them? And the same goes for cigarette…pencils. It’s episode 27 of LÜT. For pencils that are more musical, grab yourself a pair of drumstick pencils. And Davi…
Glee! Hot Dogs! IMG! 9
This is where astronauts go to get a drink. Get it? And catch that hot dog! It’s episode 9 of [Music]. Do you like girls but also like Legos? Well, you’re in luck! Last week, damage.com showed me Lego sculptures for [Music] adults, and BuzzFeed collected…
Most Startups Are Undercharging - Dalton Caldwell
Most of the time, people are way undercharging for their product. For some reason, there are ideas out there that you should either not charge for your product or you charge such a tiny fraction of what you could be charging that you’re not set up for suc…
Interpreting the meaning of the derivative in context | AP Calculus AB | Khan Academy
We’re told that Eddie drove from New York City to Philadelphia. The function ( d ) gives the total distance Eddie has driven in kilometers ( t ) hours after he left. What is the best interpretation for the following statement: ( d’ ) of 2 is equal to 100?…