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
SPACE STRAW
Hey, Vsauce. Michael here. Our atmosphere is a thin veil of air, held to earth’s surface by gravity. We live in it, we breathe it, we walk through it every day; it contains all weather, but yet it is almost nothing. In fact, if the earth was the size of a…
This Is What It's Like to Live in a World Without Smell | Short Film Showcase
I wish I had more of these dreams. I had one dream I woke up so happy; it was so real. I remember being in the kitchen, and all of a sudden, I smelled broccoli. I took it out of the fridge. It was just so real, and when I woke up, I was happy. My friends …
A Conversation with Elad Gil
Okay, the ACS on. We’re good. Good morning, everyone. I am very happy to have my friend A lot Gil here. You saw some of you, or all of you, if you looked online, a talk yesterday about how to get meetings with investors and raise money. If you would be so…
A Russian City's Surprising German Roots | National Geographic
In Kaliningrad, the architecture looks German. The neighborhood has some German names, and its most famous resident was Germany’s most renowned philosopher, Immanuel Kant. But this is not in Germany; this is Russia. The city began its life as Königsberg, …
Don't Shoot a Blue Tongue Deer | The Boonies
You can see we’re on a deer trail. There’s probably one coming down this way. In Western Idaho, Bearclaw is on the hunt for white-tailed deer. He and his good friend Conan have decided to cover more ground. But over the past 4 hours, there are no signs o…
The Mexican-American War | AP US History | Khan Academy
This is a painting of U.S. General Winfield Scott entering Mexico City on September 15, 1847. Scott landed with a U.S. naval fleet several weeks beforehand. He bombarded the coastal stronghold of Veracruz and then fought his way inland toward the capital.…