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
Current direction | Electrical engineering | Khan Academy
In the last video, we talked about the meaning of current. Current is defined to be the movement of charge, amount of charge per second. We looked at a copper wire where electrons are carrying the current, and we also looked at a salt solution where both …
15 Things You Didn't Know About LOUIS VUITTON
15 things you didn’t know about louis vuitton. Welcome to alux.com, the place where future billionaires come to get inspired. Hello, Alexers, and welcome to another exciting original video presented by alux.com. Today, we’re going to look at the number on…
Population growth rate based on birth and death rates | Ecology | AP Biology | Khan Academy
When you take an AP Biology exam, it is likely that it will include a formula sheet that will include formulas like this on it. It can be a little bit intimidating at first because we’re not used to seeing formulas like this that involve—in fact, this is …
The Stoic Truth: Are You Sabotaging Your Own Success? | STOICISM INSIGHTS #stoicism
Welcome back to Stoicism Insights, your guide to unlocking the timeless wisdom of Stoic philosophy for a more fulfilling life. Today we’re delving into a topic that’s often overlooked: the negative habits that hinder our journey towards virtue and tranqui…
Crazy experiences while selling private jets!
When you’re selling a jet for a company, that company is either moving up to a bigger, newer jet, or the company’s having problems and they’re selling the jet and they’re getting out of the business of operating their own corporate jet. If it’s the latte…
The presidential incumbency advantage | US government and civics | Khan Academy
What we’re going to do in this video is talk about the incumbent advantage. This is the idea that the person who is already in power, the incumbent, has an advantage in elections. In particular, we’re going to focus on presidential elections, although thi…