Author Topic: Why Airbnb owners are about to Sell  (Read 698 times)

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Offline Ptarmigan

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Why Airbnb owners are about to Sell
« on: July 03, 2023, 09:33:11 PM »
Why Airbnb owners are about to Sell
https://www.reventure.app/blog/airbnb-owners-are-being-forced-to-sell

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Many Airbnb owners will soon be forced to sell their properties, resulting in a housing bust that could be on par with the 2008 Subprime Crisis in some cities.



Many Airbnb owners will soon be forced to sell their properties, resulting in a housing bust that could be on par with the 2008 Subprime Crisis in some cities.

These Airbnb owners are getting ready to sell because of "Airbnb bust", a downturn in the short-term rental market that started in the second half of 2022, with Airbnb operators in some cities facing a 50% decline in revenue. These declining revenues are the result of a slowdown in post-pandemic travel demand to go along with a massive increase in Airbnb supply, trends which are now causing many Airbnb operators to lose money on their rental.

Many people bought houses for Airbnb. An Airbnb bust is looming as due to post-pandemic travel demand and massive increase in Airbnb supply.

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65% more Airbnbs than Homes for Sale in 2023
But before getting into the city-specific data, it's important to understand the broader national trends. Most notably, that the number of Airbnb rentals in America has skyrocketed from less than 200,000 seven years ago to nearly 1 million in 2023 according to data from AllTheRooms.

At the same time, the number of homes Listed For Sale has plummeted, dropping from roughly 1.2 million prior to the pandemic to less than 600,000 today according to data from Realtor.com. The result is that there are currently 65% more homes listed for rent on Airbnb than listed For Sale.



The rise in Airbnb rentals was caused by 1) investors buying up houses to rent out short-term and 2) existing homeowners deciding to list their houses on Airbnb instead of selling them. A double whammy, one-two punch that has sucked inventory out of the US Housing Market.

Investors bought up houses for short-term rental and homeowners not selling their house.

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Phoenix is ground zero for Airbnb Bust
The epicenter of Airbnb bust is undoubtedly Phoenix, AZ, a market that is now plagued with a huge glut of short-term rental supply, with the number of Airbnb rentals in Maricopa County increasing by 500% over the last seven years.

Much of that listing growth has come in the last 15 months, as a downturn in the Phoenix housing market pushed many owners to list their properties on Airbnb instead of selling them. The result was that Airbnb supply increased from 10,000 in early 2022 to nearly 18,000 today.


Phoenix has more Airbnbs than houses for sale! This would partially explain why there is a housing shortage.
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Offline Old n Grumpy

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Re: Why Airbnb owners are about to Sell
« Reply #1 on: July 04, 2023, 06:23:23 AM »
Home owners here are pushing to ban the short term rentals. I know I wouldn’t be happy having a house next door with a constant flow of strangers coming and going.
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