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
Simulations and repetition | Intro to CS - Python | Khan Academy
I’m running a coin flip experiment and I want to find out how likely each outcome is: heads or tails. So I flip a coin once, twice, 100 times. Once I’ve repeated that experiment enough times, I see that about 50% of my flips are heads and 50% are tails. …
Charlie Munger: The Investment Opportunity of a GENERATION (Last Ever Interview)
Oh boy, do I have a special treat for you guys! Legendary investor Charlie Munger just gave a rare sit-down interview, which is the first new Charlie interview I have seen in years. You’re going to want to stick around to the end of this video because Mun…
The Key To A Long-term Relationship
How do you know when you meet your perfect partner that you think is going to be with you for life? Maybe you get married, maybe you don’t. But my point is, why are they the right one for you? You have to think long term. Are they your partner because th…
Effective | Vocabulary | Khan Academy
This one’s going to work like a charm, wordsmiths, because the word we’re featuring in this video is effective. Effective, it’s an adjective meaning successful, good at something. The etymology, the derivation of this word helps explain it, I think. Thre…
The Next Market Crash | How To Get Rich In The 2023 Recession
What’s up Graham, it’s guys here. So I’ve got some good news and some bad news. The bad news is that more than half of Americans are already behind in the retirement savings. Elon Musk is bracing for a painful recession throughout 2023, and the housing ma…
Sal's back to school 2021 message
Hi everyone, Sal Khan here from Khan Academy. We’re entering into yet another back to school, but this is a back to school that’s very unusual compared to all others. We hope that we’re finally going to get to some level of normalcy as we see the light a…