Airbnb revenue 'down by 50 per cent' sparking huge housing market crash fears

[cameraman]

One real estate expert has revealed that Airbnb's unfolding profit crisis is likely to cause a housing crash "on par with the 2008 subprime crisis" in some cities

 

 

 

 

Airbnb's alleged revenue crisis has sparked a debate among real estate agents, economists, and the company's press team after one expert declared that their loss of profits is likely to cause a housing crash "on par with the 2008 subprime crisis" in some cities.

With revenues dropping to almost 50 per cent in Phoenix, Arizona, Austin, Texas, and Sevierville, Tennessee, real estate agent Nick Gerli tweeted, "The Airbnb collapse is real. Revenues are down nearly 50% in cities like Phoenix and Austin."

 

"Watch out for a wave of forced selling from Airbnb owners later this year in the areas hit hardest by the revenue collapse."

On Tuesday, he tweeted that the crisis is "scary" simply due to the amount of Airbnbs being listed versus homes to live in.

 

Economist Jamie Lane, senior vice president at AirDNA, a company which tracks performance and monitors trends in short-term rentals, however, says that data from AllTheRooms is inaccurate and Airbnb's profits only fell "by just above 3 percent," according to MSN.com.

 

 

Tiffany's New York fire: Huge blaze tears through refurbished Fifth Avenue building

 

 

A real estate expert sparked a debate when he said that Airbnb's profit loss was big enough to start a new housing crisis, reminiscent of the one in 2008 ( 

Image: 

Bloomberg via Getty Images)

Airbnb has long been accused of contributing to the housing crisis that's happening across the United States, as well as in the UK and certain areas of Europe.

It's reminiscent of the 2008 housing market crash that occured after predatory lenders were caught giving out loans to individuals likely to default on them - and when a large group of home-owning individuals could no longer pay their mortgages, this caused a crisis for the banks who began to collapse and required a government bailout.

Meanwhile, homeowners were holding 'toxic assets' - since suddenly no one could afford to buy, home prices plummeted, and individuals were left hanging on to properties that they couldn't afford and couldn't sell.

 

Similarly, the collapse of Airbnb would trigger a similar effect. Currently, according to Airbnb, they have more than 4 million hosts all over the world - which means a large percentage of those individuals owns the property and makes payments on it monthly.

 

 

Airbnbs have risen in price and attached a load of hidden fees, with inflation on the rise, less individuals are booking them - which may have a devastating effect on those that own these properties ( 

Image: 

Getty Images North America)

Should the public decide to stop renting Airbnbs, all of these property owners would be stuck holding on to homes that they can't make payments on, or sell.

Other cities that have seen significant drops this year compared to 2022 include Sevierville, Tennessee, where revenues have dropped by 47.6 percent; San Antonio, Texas, with a 43.8 percent decline in revenue; Nashville, Tennessee, with a 39 percent drop; Denver, Colorado, with a 38.6 percent drop; New Orleans, Louisiana, with 37 percent drop; and Seattle, Washington, with a 35.2 percent drop.

All data was calculated as a three-month average revenue per listing for May 2023, compared to May 2022, according to Newsweek and AllTheRooms.

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Mr Gerli, who made the initial tweets that sparked the debate, also write: "Data from AllTheRooms shows 1 million Airbnb/VRBO rentals" in the US. Compared to only 570k homes for sale. Creates huge home price downside if struggling Airbnb owners elect to sell."

When it comes to Phoenix, Mr Gerli wrote that the number of short-term rentals, which is estimated at 18,000, is "more than double the number of for sale listings," estimated at 8,000.

"Mix the huge Airbnb supply with revenues down -50% and you get a cocktail for massive forced selling," Mr Gerli tweeted.

[Android_Halwa]

Charana kodi ki barana masala ante itlane aitadi…

[cameraman]

1 minute ago, Android_Halwa said:

Charana kodi ki barana masala ante itlane aitadi…

ante?

[CherryGaru]

[Pandubabu]

17 minutes ago, cameraman said:

One real estate expert has revealed that Airbnb's unfolding profit crisis is likely to cause a housing crash "on par with the 2008 subprime crisis" in some cities

 

 

 

 

Airbnb's alleged revenue crisis has sparked a debate among real estate agents, economists, and the company's press team after one expert declared that their loss of profits is likely to cause a housing crash "on par with the 2008 subprime crisis" in some cities.

With revenues dropping to almost 50 per cent in Phoenix, Arizona, Austin, Texas, and Sevierville, Tennessee, real estate agent Nick Gerli tweeted, "The Airbnb collapse is real. Revenues are down nearly 50% in cities like Phoenix and Austin."

 

"Watch out for a wave of forced selling from Airbnb owners later this year in the areas hit hardest by the revenue collapse."

On Tuesday, he tweeted that the crisis is "scary" simply due to the amount of Airbnbs being listed versus homes to live in.

 

Economist Jamie Lane, senior vice president at AirDNA, a company which tracks performance and monitors trends in short-term rentals, however, says that data from AllTheRooms is inaccurate and Airbnb's profits only fell "by just above 3 percent," according to MSN.com.

 

 

Tiffany's New York fire: Huge blaze tears through refurbished Fifth Avenue building

 

 

A real estate expert sparked a debate when he said that Airbnb's profit loss was big enough to start a new housing crisis, reminiscent of the one in 2008 ( 

Image: 

Bloomberg via Getty Images)

Airbnb has long been accused of contributing to the housing crisis that's happening across the United States, as well as in the UK and certain areas of Europe.

It's reminiscent of the 2008 housing market crash that occured after predatory lenders were caught giving out loans to individuals likely to default on them - and when a large group of home-owning individuals could no longer pay their mortgages, this caused a crisis for the banks who began to collapse and required a government bailout.

Meanwhile, homeowners were holding 'toxic assets' - since suddenly no one could afford to buy, home prices plummeted, and individuals were left hanging on to properties that they couldn't afford and couldn't sell.

 

Similarly, the collapse of Airbnb would trigger a similar effect. Currently, according to Airbnb, they have more than 4 million hosts all over the world - which means a large percentage of those individuals owns the property and makes payments on it monthly.

 

 

Airbnbs have risen in price and attached a load of hidden fees, with inflation on the rise, less individuals are booking them - which may have a devastating effect on those that own these properties ( 

Image: 

Getty Images North America)

Should the public decide to stop renting Airbnbs, all of these property owners would be stuck holding on to homes that they can't make payments on, or sell.

Other cities that have seen significant drops this year compared to 2022 include Sevierville, Tennessee, where revenues have dropped by 47.6 percent; San Antonio, Texas, with a 43.8 percent decline in revenue; Nashville, Tennessee, with a 39 percent drop; Denver, Colorado, with a 38.6 percent drop; New Orleans, Louisiana, with 37 percent drop; and Seattle, Washington, with a 35.2 percent drop.

All data was calculated as a three-month average revenue per listing for May 2023, compared to May 2022, according to Newsweek and AllTheRooms.

Follow the Mirror US News page on Facebook

All the latest news, showbiz, lifestyle and sports updates, brought to you by our dedicated American team.

Follow the Mirror US News page on Facebook to make sure you're not missing out.

 

Mr Gerli, who made the initial tweets that sparked the debate, also write: "Data from AllTheRooms shows 1 million Airbnb/VRBO rentals" in the US. Compared to only 570k homes for sale. Creates huge home price downside if struggling Airbnb owners elect to sell."

When it comes to Phoenix, Mr Gerli wrote that the number of short-term rentals, which is estimated at 18,000, is "more than double the number of for sale listings," estimated at 8,000.

"Mix the huge Airbnb supply with revenues down -50% and you get a cocktail for massive forced selling," Mr Gerli tweeted.

If you want to accommodate 3 families over weekend , you end up paying 1500+ for that weekend , which is little too much ..better get into a hotel..

The advantages are not worth anymore .

[Android_Halwa]

20 minutes ago, cameraman said:

ante?

Ante…if you stay at an air bnb…daily rental kante ekuva cleaning charges and fees vunyunayi…price advantage lekapoga such charges are sometimes so high so that staying in airbnb kante hotels are at price advantage now. 
 

Daily rental 100 antaru, checkout la susthe total $250 vuntundi

[cameraman]

3 minutes ago, Android_Halwa said:

Ante…if you stay at an air bnb…daily rental kante ekuva cleaning charges and fees vunyunayi…price advantage lekapoga such charges are sometimes so high so that staying in airbnb kante hotels are at price advantage now. 
 

Daily rental 100 antaru, checkout la susthe total $250 vuntundi

correct,  hotel always better you get privacy

[Konebhar6]

Airbnb is disputing the claim. They say their demand is still strong. 

https://finance.yahoo.com/news/airbnb-disputes-collapse-host-revenue-205641047.html

[chantigaduUS]

4 hours ago, Android_Halwa said:

Ante…if you stay at an air bnb…daily rental kante ekuva cleaning charges and fees vunyunayi…price advantage lekapoga such charges are sometimes so high so that staying in airbnb kante hotels are at price advantage now. 
 

Daily rental 100 antaru, checkout la susthe total $250 vuntundi

cleaning fees goes to owners only..those are set by owners and cleaning is mandated by Airbnb. Also.. most ppl book Airbnb for experience not for cost. Staying in a one room hotel with kids is definitely not same experience and fun as staying in an Airbnb house

[rmJU72]

How many properties are they talking about…ento ee madhya anni hyped up news la unnai…can’t trust anything 

[kevinUsa]

Waste Airbnb

 25 vegetables ki 95c bill vestastadu

[Android_Halwa]

1 hour ago, chantigaduUS said:

cleaning fees goes to owners only..those are set by owners and cleaning is mandated by Airbnb. Also.. most ppl book Airbnb for experience not for cost. Staying in a one room hotel with kids is definitely not same experience and fun as staying in an Airbnb house

Sure. Thanks for the information. It makes sense.

[AvramFaind]

The news about Airbnb's revenue decline and its potential impact on the housing market is indeed concerning. Such a significant drop in revenue could have ripple effects, especially in cities where Airbnb plays a significant role in the housing market. However, it's essential to remember that the housing market is influenced by a variety of factors, and while Airbnb's situation is noteworthy, it's just one piece of the puzzle.
Exploring options beyond traditional real estate, such as luxury serviced apartments, could be a smart move. https://luxuryservicedapartments.com/ offers a range of upscale accommodations that could be a great alternative to traditional rentals or Airbnb properties.

[Bondu_Babu]

On 6/29/2023 at 3:57 PM, Pandubabu said:

If you want to accommodate 3 families over weekend , you end up paying 1500+ for that weekend , which is little too much ..better get into a hotel..

The advantages are not worth anymore .

Every day cleaning charges vesthadu bokkalodi room service vundadu.

[Rojaa]

On 6/29/2023 at 5:44 PM, Android_Halwa said:

Charana kodi ki barana masala ante itlane aitadi…

https://www.instagram.com/reel/C37fRh4J7bz/?igsh=cGlvNmprNWp0bTU3