How AirBnb will Crash the Housing Market

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How Airbnb will crash the housing market: https://youtu.be/i2c3rDQELnk

This is how Airbnb could finally crash the bubble that has been building in the US house market for a decade. Investors purchasing single family houses to rent on short term rental platforms like Airbnb has risen in popularity. Real estate investors do this in order to increase their return on investment. Renting a property short term has the potential to generate significantly more rent than a traditional long term rental. Short term rental investors have been making a ton of money as demand for travel has been strong. Consumers have had large amounts of savings and been willing to spend money on traveling. Things are starting to change. Inflation has been impacting consumers and consumer savings has dwindled.

Many investors in Airbnbs used larges amount of debt or leverage as it is referred to in real estate investing. The travel industry is notoriously inconsistent and heavily dependent on the health of the broader economy. Investors who purchased expensive properties with large amount of debt at the peak of the bubble may have difficultly paying their mortgage payment when things start to slow down. Given that their are over 1 million properties are listed on Airbnb, them being forced to sell could add to supply of housing units on the market. This combined with high interest rates, could put downward pressure on the US housing market.