From re:venture Consulting, June 23:
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.
I believe these losses will cause a wave of distressed selling from Airbnb operators in 2023 and 2024, particularly in cities where:
1) revenue has crashed the most, and
2) Airbnb supply increased the most
If you're a homebuyer or real estate investor it's important to understand the exposure your city and neighborhood has to the Airbnb crash, particularly the timing and depth of the downturn. Because when it all shakes out, I believe that there will be some great buying opportunities for homebuyers and investors across the real estate spectrum.
So, without further ado, let's dive into the data.
(Note that when I refer to "Airbnb" in this article, I am referring to the broader short-term rental market, which includes listings found on Airbnb, VRBO, Booking.com, and other travel sites.)....
....MUCH MORE
