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
Worked example: estimating sin(0.4) using Lagrange error bound | AP Calculus BC | Khan Academy
Estimating the sign of 0.4 using a McLaurin polynomial, what is the least degree of the polynomial that assures an error smaller than 0.001? So, what are we talking about here? Well, we could take some function and estimate it with an Nth degree McLaurin…
Warren Buffett: How to invest your first $10,000
So whether you have $10,000 to invest or 10 million, you’re going to learn a ton from this video. Interesting fact about investing: Legend Warren Buffett that you may not already know. Despite currently being a billionaire many times over, Warren Buffett…
The stoic idea that will make you unstoppable
So pretend you’re stuck in traffic. You’re super frustrated. You’re gripping the wheel tight. You can’t believe that you’re late for work and it’s your first day. You just landed your dream job, and it’s bumper-to-bumper traffic. You can’t do anything abo…
Logistic growth versus exponential growth | Ecology | AP Biology | Khan Academy
Let’s now think a little bit more about how we might model population growth. As we do so, we’re going to become a little bit more familiar with the types of formulas that you might see in AP Biology formula sheet. In a previous video, we introduced the …
Mastery Learning in Mr. Vandenberg’s Class
I’m Tim Vandenberg and I’ve been teaching for 25 years: 17 years in Hesperia, California, 6th grade at Carmel Elementary School. Hesperia is a lower socio-economic status area on average, especially among our student population. 100% of our students at th…
Miyamoto Musashi | A Life of Ultimate Focus
Miyamoto Musashi is one of the most legendary samurai and famed as Japan’s greatest swordsman—undefeated in more than sixty duels. After he escaped death during the Battle of Sekigahara, Musashi became a ronin. Aside from being a swordsman, he was also a …