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
15 Ways To Make Better Friends
Did you know that you are the average of the five people you spend most of your time with? Now, that’s hardly a surprise, considering humans are social creatures. We have evolved to fit literally anywhere. But there’s a catch: if you are surrounded by ave…
Khan Academy Ed Talks with Ned Johnson - February 2, 2022
Hello and welcome to Ed Talks with Khan Academy! I’m Kristen De Cerva, the Chief Learning Officer here at Khan Academy, and I’m excited today to talk to Ned Johnson, who’s an author, speaker, and founder of PrepMatters, which is a company providing academ…
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…
Experiencing the Rich History and Food of Canada's Season of Bounty | National Geographic
Iconic! I love to know the life of the stuff I’m going to eat before it shows up on my plate. That’s why I’m in Canada’s Maritime Provinces and Quebec during the season of bounty. To connect with the land and rich history through people and food. Good mo…
Worked example: Inflection points from second derivative | AP Calculus AB | Khan Academy
Let G be a twice differentiable function defined over the closed interval from -7 to 7, so it includes those end points of the interval. This is the graph of its second derivative G prime prime. So that’s the graph right over there: Y is equal to G prime …
Filming in a Place of Extremes | Continent 7: Antarctica
Antarctica is a place of extremes. Visibility’s dance 20 laces, it’s cold. They’re always cold, and camera equipment doesn’t work. So, on that cold camping, it’s probably 100 degrees warmer than it is right now. Because Antarctica is so hard to get to, we…