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
Ask me anything with Sal Khan: May 15 | Homeroom with Sal
Hi everyone, welcome to the daily homeroom livestream. For those of you all who are wondering what this is, when we started having physical school closures, we realized—and everyone had to be socially distant—we realized that it’s our duty really, as a no…
Alaskan Medicine - Deleted Scene | Life Below Zero
Picking some yarrow here. I’m going to make some salve for my hands, feet, and my dog’s feet. Dog’s feet get in the cold conditions that we run them in; they get kind of dry, and this helps to keep them supple and soft. It’s very important to be knowledge…
The Brachistochrone
[Music] Hey Vsauce, Michael here. If every single one of us held hands together in a chain of unity around Earth, would there be enough of us to go all the way around the planet? There are about seven and a half billion of us, and that’s a lot. But remem…
Q&A With Grey: 500,000 Subscribers Edition
Hello Internet, Here we are: 500,000 subscribers – well, actually… by the time I finished this video it’s a bit more than that – but who knew that after I promised to do a Q&A that the pope would resign? Anyway… When I uploaded my first explanation …
Divergent Minds
[ambient music playing] [Michael] Derek, have you ever watched Mind Field on YouTube? No, but I would like to watch it, Michael. [Michael] Okay. So Mind Field has a theme song that I’d love for you to listen to to see if you can play it for me on the p…
The REALISTIC Millionaire Investing Advice In Your 20s
What’s up, guys? It’s Graham here. So, some of you know I just recently turned 30 years old, and looking back, my 20s have been absolutely by far the most transformative years of my entire life. Not only in terms of investing my money and building my wea…