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
Price elasticity of supply determinants | APⓇ Microeconomics | Khan Academy
In several videos, we have talked already about the price elasticity of supply. In this video, we’re going to dig a little bit deeper, and we’re going to think about what factors might make a supply curve, or supply schedule, or portions of it to be more …
How to Invest $1.6 BILLION DOLLARS if you win the Powerball Lottery
What’s up you guys, it’s Graham here! So here’s something that’s probably all crossed our minds at some point or another: have you ever been faced with the dilemma of what happens when you win the one point six billion dollar jackpot lottery, and you sim…
Cost vs Quality in Edtech – Keith Schacht, Avichal Garg, and Geoff Ralston
A vitro you found it prep me in 2001, sold it ten years later in 2011. That was actually the year we found it. Imagine K12, the world’s first educational technology accelerator. And, Keith, you founded Mystery Science, I think in 2013. We just celebrated …
The Mystery of Synchronous Fireflies - Smarter Every Day 274
Hey, it’s me, Destin. Welcome back to Smarter Every Day. I grew up here in Alabama, like most kids in the area, learning how to catch lightning bugs and putting them in a jar. It’s a magical memory that most of a share. But today, on Smarter Every Day, we…
15 Things That Are OLD MONEY AESTHETIC
New money shouts; old money whispers. But what are the words of its whisper, and how can you adopt some of its vocabulary into your life? Well, we’re about to find out in today’s video: 15 things that are old money aesthetic elixirs. We’re so glad you joi…
Worked example: Motion problems with derivatives | AP Calculus AB | Khan Academy
A particle moves along the x-axis. The function x of t gives the particle’s position at any time t is greater than or equal to zero, and they give us x of t right over here. What is the particle’s velocity v of t at t is equal to 2? So, pause this video,…