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
Apostrophes and plurals | The Apostrophe | Punctuation | Khan Academy
Hello grammarians! Hello David! Hello Paige! So today we’re going to talk about apostrophes and plurals. We talked about this a little bit in our introduction to the apostrophe video. This is a very, very rare case where we use an apostrophe to show that…
Growth vs Value Investing. Which is Better?
Hey guys, welcome back to the channel! In this video, we are going to be comparing two corners of the investing world: that is, growth investing versus value investing. We’re going to have a look at what each one is about, compare the two, and also look a…
Underground Templar Caves | Lost Cities with Albert Lin
Ah! Eliezer? Yes. It’s so nice to meet you. Welcome, welcome. This is beautiful! Yes! This is where the Templars actually hung out? In here? No, no, no. This is not the Templar. We are in the right place, but in the wrong time. Let’s go. If we want to se…
The Rich Culture of Nelson Tasman | National Geographic
New Zealand’s Nelson Tasman region is the home of sunny beaches, outrageous landscapes and Nelson, a small city that boasts a thriving art scene, craft breweries and wineries, and a farmer’s market famed for its local specialties. National Geographic sent…
You Are Not Where You Think You Are
Look around you. Where are you? Where is this place you are occupying? Somewhere in a room, maybe in a city on a continent on a planet orbiting a star in a galaxy among billions. But… where is all of that? While this may feel like a daft question, it turn…
Stealth Wealth (Explained)
They say to live happy, live hidden. Something you’re not yet aware of is happening in the markets, and the implication it has will most likely impact you. Rich people are changing their behaviors to accommodate the current moment in time, and the average…