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
Causes and Effects of Climate Change | National Geographic
Human activities, from pollution to overpopulation, are driving up the Earth’s temperature and fundamentally changing the world around us. The main cause is a phenomenon known as the greenhouse effect. Gases in the atmosphere, such as water vapor, carbon…
Node voltage method (steps 1 to 4) | Circuit analysis | Electrical engineering | Khan Academy
We’re going to talk about a really powerful way to analyze circuits called the node voltage method. Before we start talking about what this method is, we’re going to talk about a new term called a node voltage. So far, we already have the idea of an elem…
Horizontal & vertical lines | Mathematics I | High School Math | Khan Academy
What is the equation of the horizontal line through the point (-4, 6)? So, let’s just visualize this. Once you get the hang of it, you might not have to draw a graph, but for explanatory purposes, it might be useful. So, (-4, 6), so that’s going to be i…
The Emirate of Nejd and the Kingdom of Saudi Arabia
Where we left off in the last video, the first Saudi state, the Emirate of Thyria, was ended in the Ottoman-Wahhabi War. It was ended by the Ottomans, but it was by actual Egyptian forces that retook control of Mecca and Medina, and then laid siege to the…
This Is Why Discord Is Dangerous
On the 13th of April 2023, a 21 year old member of the U.S Air Force National Guard, Jack Tashira, was arrested on live TV for leaking classified documents. Tashira had shared classified information about the war in Ukraine with his Discord group, Thug Sh…
The Upcoming Housing Market Crash
One topic that has been getting quite a bit of attention recently is the state of the US housing market. A quick Google search, and you will find plenty of articles and commentary about how the housing market is overheated and we are in the midst of anoth…