The Collapse of AirBnB

[rareboy]

This post caught my eye and sent me looking. I didn't realize that in March of this year, Air had removed 100,000 listings from its inventory. There has been such an oversaturation of the market as everyone (it seems) tried to get in on the short term rental game...and then suddenly, there is also a huge slowdown in rentals, particularly in the US.

There is some specualtion that this is another portent of a recession and the comapny missed earnings this past week, leading to another fall in their stock price, down 25% this year.

Of even more interest, is that a lot of people who have been buying properties to rent out are now apparently underwater, as bookings fall and more cities regulate the short term rental market.

In some states, like Florida, where there has been a spectacular increase to over 140,000 units, it likely won't be regulation that ruins the game, but oversupply.

So apparently many owners are trying to sell while they can. And often, apparently at a loss. This may result in a lot of properties being offered in an already softening housing market. And this could be good news for buyers.

https://www.reddit.com/r/FirstTimeHomeBuyer/comments/1b6p7hs/airbnbs_are_collapsing_good_news_for_us/

 

[NotHardUp1]

View attachment 2688664

Could not have said it better.

The American willingness to look the other way when runaway capitalism happily feasts on the glut of money from speculating in housing is an indictiment of the very morality of this country.

Giving citizens who are working class the alternative of living in overpriced rentals versus overpriced mortgages is becoming a new indentured servitude.

The rich get richer.

 

[LilBit]

My neighborhood is largely second homes, many of which have been rented as AirBnBs. Our HOA recently imposed strict limits on short-term rentals, and I'm seeing more and more homes for sale. I'm hoping this spreads to the rest of Flagstaff and leads to lower housing prices.

 

[LeicsDom]

This post caught my eye and sent me looking. I didn't realize that in March of this year, Air had removed 100,000 listings from its inventory.

I think part of the reason is that the company is receiving so many complaints from people about abuses of the properties. Also I think many local authorities are starting to clamp down on the numbers of properties, especially in tourist hotspots

 

[Thad1527]

I'm an Airbnb user. I just spent five nights in an apartment in the Bywater section of New Orleans, under the owner's home. I also spent two nights at a luxury New Orleans downtown hotel (#8 ranked on Trip Advisor).
The Airbnb was more to my liking...quieter neighborhood, more space. I don't know anyone would want to live in this apartment long-term...not much space for storage, just one big room (and lovely bathroom). But it met my needs.