If you’re already concerned about the fast-cooling real estate market, listen to this:
Over half of all AirBnB units were purchased within the past 2 years.
And now that the pandemic stimulus checks have been spent & folks have got their post-lockdown travel itch scratched, bookings are drying up fast.
Many units are now negative on their cash flows.
This means that a material percentage of these new AirBnb investors, many inexperienced with renting & who have too much debt to afford monthly losses, may soon become distressed sellers.
With millions of properties under short term rental through AirBnb, VRBO & other players, the potential inventory hitting the market at ‘must go’ prices could be another major factor pulling home prices down in 2023.
To understand just how serious a threat this poses to the housing market, Wealthion sat down with housing analyst @texasrunnerDFW: