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
CS50 Lecture by Mark Zuckerberg - 7 December 2005
MICHAEL D. SMITH: This afternoon I have the pleasure of introducing Mark Zuckerberg, which is one of our guest speakers this semester to come and talk a little bit about computer science in the real world. As most of you probably know, as you guys all do …
How Lasers Work (in practice) - Smarter Every Day 33
Hey it’s me, Destin. Welcome to Smarter Every Day. So I’m in the Netherlands today and I’m hanging out with a buddy of mine that I met through a research project. His name is Johan Kr… Reinink. That. So, anyway, Johan is a laser expert, and I’ve worked…
Is a US Recession Really Coming Soon?
This video is sponsored by Seeking Alpha. Sign up to Seeking Alpha Premium using my link to score a 7-Day free trial and $25 off your annual subscription. Is the US really headed for a recession? A week ago, you probably saw the stock market take a decen…
Interpreting solutions of trigonometric equations | Trigonometry | Precalculus | Khan Academy
Alvaro presses the treadle of a spinning wheel with his foot. It moves a bar up and down, making the wheel spin. So just to be clear, what a treadle is: this is an old spinning wheel, and this little pedal is a treadle. As this goes up and down, it’s goin…
Adding vectors in magnitude and direction form | Vectors | Precalculus | Khan Academy
We’re told that vector A has magnitude 4 in direction 170 degrees from the positive x-axis. Vector B has magnitude 3 in direction 240 degrees from the positive x-axis. Find the magnitude and direction of vector A plus vector B. So pause this video and see…
DESTROYING all my credit cards with a FLAMETHROWER
What’s up you guys? It’s Graham here. So after reading all of the comments on the unboxing video of the JP Morgan Reserve credit card, I came to the realization that credit cards are evil. So I’m gonna be destroying all of my credit cards today and seeing…