The Catastrophic 2024 AirBnB Bubble Crash
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- Опубліковано 20 гру 2023
- What began as a genius idea has turned into a real estate nightmare. The concept of short-term rentals was a simple one. Turn your home into a money-making machine by providing people with an alternative to traditional hotels. Started by a group of young entrepreneurs in 2007, AirBnB was essentially the birth of this concept. It was simple. List your room, apartment, or house on a website and let strangers book it as if it were a hotel. Originally met with skepticism, the idea took off, and now dozens of companies compete in a 100 billion industry commonly named as the STR industry or Short Term Rental. I'm sure most of you watching this video right now have once upon a time either booked an STR or stayed at one with friends. And while the popularity of the industry has exploded, in recent years many are changing their opinions. The truth behind AirBnB, Vrbo, and all the other STR companies is starting to come out, and now people and municipalities are rebelling.
Philadelphia study:
www.philadelphiafed.org/consu... - Фільми й анімація
Short-term rentals were neat for a short while, but now their fees and hidden costs make hotels more affordable than short-term rentals.
They also let me take my dog for a fee.
@@sandraalegria3439 -- there can be advantages - in terms of location or an "experience" or handling more people (multi-room, full kitchen, etc...) or even price or price per person.
That said, they getting a little over extended and charging more - and tossing on extra fees or hidden fees ... yes and often one's mileage can vary with the way the property is managed or service requests are handled.
This AI generated video is a bit, lacking.
Plus, the listings are frequently misrepresented.
In my opinion, at a three night stay or longer, the costs level out and the benefits of a kitchen, more space etc. outweigh the hassles.
If you need more than one hotel room, the break even point is sooner.
Yt is such a free and open platform.....NOT.
Last time I rented an Airbnb, they literally made us clean the entire apartment, wash all of the dishes and still complained that we left a large plate in the sink and gave us a bag rating. It was no more room in the dishwasher so we hand washed it and left it in the sink to dry. They accused us of smoking cigarettes and leaving cigarette buds everywhere. None of us smoke. This year we’re just going to go to a proper resort and skip all of that bullshit.
Owners typically have you rinse your dishes and run them through the dishwasher, not exactly torture. Nobody wants to wash your greasy lip smacked dishes, right? And let's face it, you probably were smoking weren't you? As owners who do a pre check in check we check for things like cigarette butts. It's always amazing when there are no cigarette butts lying anywhere when you check in and then tons when you check out but magically you weren't smoking. (maybe your illegal dog you brought was smoking all them cigarettes?) lol. Trust me for every guest "issue" owners have 12 issues. We just let so much slide. Thank God for the good guests as bad guests only make up like 1-2% of guests. I hate to say this but based on your post you are probably in that 1%. I can't even imagine what your own house looks like? Send pics!
@@kellykortman You didn't read a word that 'vatran' wrote, did you? Hyper defensive much?
@@matthewronson5218 they must have a failing bnb business
@@kellykortman You tell 'em Kelly. I know exactly what you're talking about. You set rules that are VERY clear, but some guests don't like the rules, but want to book anyway.
Im an Airbnb owner(note I did NOT take away an existing residential property). I never ask my guests to clean. I dont even ask them to take trash out. You need to read reviews before you book a place. If an owner asks you to do all this and it wasnt in his description, leave him a bad review
I used to love staying at AirBNB but I quit using them when the cleaning fees became equal to or higher than the rental fees. Greed ruined a great idea.
It's not greed, the owner did not fully appreciate their overheads; especially with escalating property acquisition costs.
I’m GLAD these home rentals are starting to become illegal. They really messed up affordable housing! I make six figures and I STILL can’t afford a decent home.
And the other effects include decimation of School Districts ! No families, no kids, no need teachers. Whole communities collapse. NotBest
Yep. Same here
Same
Is all about cost of living ratio. In a hyperinflation places we pity the millionaires
Misplaced blame
I just finished my last Airbnb stay ever. The place was an absolute dumpster fire: unclean, unfurnished except for the bare minimum, nonfunctional just about everything, broken plumbing, electrical code violations, an unsecured property, constant noise intrusion, and just filth and a general state of advanced decay. The owner was clearly trying to milk it for cash while dodging responsibility. Trying to get some satisfactory resolution from Airbnb has turned into a nightmarish quagmire.
From now on it'll be long-stay hotels where there is at least some minimum standard and accountability. I"M DONE. 😡
😂 You're Correct
you must suck at choosing a good airbnb. ive stayed in over a hundred of them by now and havent had a bad experience yet.
did you bother to read the reviews, did you bother to look at the pictures of the property, did you find their price to be unjustifiably low for what you were getting, to me this does seem to be an owner problem that they are choosing to be a slum lord (and yeah, I've stayed in a couple of crummy airbnbs with better photos then what I arrived at) but also you have to read all the reviews, read the one star reviews first, really go through the photos and then make a choice. Otherwise you end up sounding like another hater who can't afford to buy a home.
Ew hotels. Those carpets SURE ARE CLEAN....
so you didn't do your homework and booked a dump trying to save a few bucks and that means AirBnBs are trash? I think not.
The outrageous cleaning fees and expecting the renters to be maids ruined their business. The corporate greed of the STR's is coming full circle.
Fees are obscene
Hotels don't charge cleaning fees ? Or is it you just can see them ? Every time you use a credit card YOU lose about 4.5 % , you just can't see it, its like magic buff its gone.
And the OFFICIAL POLICY TO ALLOW HIDDEN CAMERAS INSIDE THE HOME , TO WATCH YOU!!!
I will never stay at an ABB
totally right answer
After they doubled my rent in south Florida, I went into debt, ruined my credit, and I was eventually forced to live in airbnbs after I realized I was going to get evicted if I didn’t leave and try to find another apartment. Due to credit and income requirements, I couldn’t get approved for a place, (even in North Carolina) with these huge companies that own all the complexes, and a private landlord would want such a huge deposit, I could never save up for one. The airbnbs were also 1.5x what my rent was in 2021, and it has been the most stressful year of my life - I really did start to realize it was partly because these companies exist that I was having such a difficult time getting out of this situation. (I’m lucky that my family and friends started to realize I needed help, and I wasn’t just messing up my life making stupid choices. My income has been steady, but in this economy, people don’t realize just how close they are to homelessness if something like a rent increase suddenly happens to them)
I know it is a concern we carry in retirement
Stop voting Democrat
Thank the federal reserve for printing money into infinite, inflating the dollar.
That's why I chose to live in a rent control area. In the rent control area I'm in, they're only allowed to raise the rent 3% per year. Which means over the last 25 years I'm now paying double the rent but it wasn't overnight. So of course, over the years I became more adept at earning a great income. My income is more than doubled so I'm cool right?
That's a shit story and I'm sorry for you to go through this. Life shouldn't be like this for regular working people people in a place like the USA. Wishing you all the best.
There are a lot of 30-something real estate "gurus" that are going to get their assess handed to them. Over leveraged so even a15% vacancy rate will wipe out their entire portfolio
yep
Or we might get some inflation again, and they could all get insanely rich. Too soon to tell. My friends that were crazily over-leveraged, are now crazily rich.
@MegaBoolaBoola you never lived through the early 80s and don't understand inflation. Dollar adjusted inflation will mean prices will go up, but the value will goes nowhere. Housing reached the ceiling of unaffordability, and corporate debt will default, causing mass bankruptcy. But tell me how people will get insanely rich. Lol
@@piRatCaptain Because the mortgages get repaid with those same inflated dollars. So you are left with real assets, paid for with worthless dollars.
Good
Loved Airbnb at first…….thought it would replace my hotels for business travel. Now, years later I am 100% back to hotels as the value of Airbnb is no longer there (and some bad experiences made it not worth the risk)
SAME!
Absolutely agree
Hotels are a better value .
@@wallybates9079 Agreed, and they're a known product with standards and accountability. And cleaner. And safer. And ... etc. etc. etc.
Exactly! The nighly rates are enticing when compared to tiny hotel room, until you get hit with all the taxes and fees that double the initial cost. We stayed one week in an AirBnB cabin (in KY) so the $300 cleaning fee was totally understandable - although we probably left it in better condition than when we arrived because I cannot leave a mess for someone else to clean up. It's NOT a good deal if you are only staying a couple of nights, though. Holiday Inn Express with complimentary breakfast FTW 😆
People buying homes using other homes that they put a zero down payment on as collateral and repeating this process over and over.. what could go wrong ?
The thought of inviting a total stranger into my home for extra $ is frightening.
It’s not their home. It is just an investment.
Where are the bank government regulators?
We contacted a bank mortgage dept regarding a STR. They had sold the mortgage off. Can’t disclose who has the loan now. Originator is the illegal bank.
It is frightening. But that's what entrepreneurship is about... Risk reward.
frightening how? Terry, you interact with strangers all the time. I host my home-the one I live in--as an AirBNB property for over a year now. I have met a great many fantastic people that otherwise would have never crossed paths with. I have also occassionally run into this kind of thinking, though it is usually reversed--the guest thinks of me as the total stranger (in MY own home) that they are afraid of. 99% of people are great, normal folks if you just have an opprotunity to get to know them, but so many is just running around in their own personal bubbles afraid of what they don't know.
Somehow large portions of our society has been taught "Stanger = Danger" for homes, but not in other places. Are you also terrified of hotels & cruise lines, too. The strangers are living even closer to you then, & there are ALWAYS a staff of complete strangers on property at all times who can enter your room at anytime--whether you lock your door or not. How about theme parks, beaches, shopping, literally anywhere public?
@@jonmoore4050 cruises do terrify me tho lol
It could be a great horror movie.
The fees have become outrageous. It is so much easier to just stay in a hotel.
Agreed. The last Airbnb I was going to book wanted $350 cleaning fee. Plus a $300 “host fee”. On top of city tax AND Airbnb fee. Wtf? I booked a luxury resort instead and it was cheaper and nicer.
Exactly
Don't be fooled. Hotels have more than their share of "hidden fees." These include so-called resort fees, parking fees, etc. You also will pay the same "taxes."
@@tammyrussell-rice5508 usually only big hotels in towns like Vegas have resort fees.
@@tammyrussell-rice5508 nonsense, normal hotels are way better of a value than AirBNB now. Post the proof.
STRs and corporate investors have got to go. We need homes to live in, not to used for rich people to extort us to get richer.
So true!! Corporate investors buying all the single family homes has killed the American dream of home ownership!!
Agreed. If you want to be a STR host, open a damn motel somewhere not already zoned for long term housing.
Palm Springs has done a good job of preventing this. They only issue one STR permit per owner (as a person or an LLC). And the LLC can not have more than 4 members.
We have sooooo many AirBNBs in our little neighborhood. Our home prices jumped from $300k to $725k in 6 years. Palm Beach County, FL. Our property taxes and insurance have skyrocketed.
Time to cash out!!
Sell it.
Stay. They’ll come down
Sell and move to Mexico, Costa Rica, Thailand and never work again ....
Dont previous owners get homestead exemptions for ex the property taxes dont jump as much of you already owned from before
I have three small accessory dwellings ( two mongolian yurts, and a tiny house) on our farm. They are rustic, funky, and unique. I started an at home farm stay business.This was the essence of airbnb when it started. It allowed me to raise both my kids at home (not in day care) and provided an income well above what part time wages could pay, off set by the need for kid care. Real estate speculation has given the platform a black eye.
The essence of airbnb was renting a bedroom inside your house because hotels were full in the area due to a big conference. Greedy people like you renting 3 units are the problem.
Two tents in my backyard are the problem? A letting people pet cows? @@networth00
@@networth00 Greedy? She jus tryna eat, n buy some wool to repair her yurt.
@redheart3014 still one property tho 💁🏽
@@networth00 learn how to read before judging people and calling them greedy. This guy has 3 units on the land where he lives. This short term rental is not taking properties off the market for long term rental seekers.
I hate ABNB. The very first Airbnb I ever used was in the hood. That's one of the fundamental flaws with Airbnb. If you visit a new town or area you have no idea where you'll be staying. Not to mention she had cats and I'm highly allergic to cats. It was the worst experience. I haven't stayed in an Airbnb since. That was 2013
I've used it a few times. the only times it actually made sense was when I was traveling in the highlands of scotland, where few places to stay are available. Other than that I have come to the conclusion that Id rather stay in a hotel.
@@BakingBadOBX funny you say that. I heard from other people that ABNB is only good out of the country.
Total fraud .
My very first airbnb experience was great. I hooked up with the hostess that night, and got to stay in the big bedroom with her. I was her first guest. I like to think I started things out right for her.
@@maidenthe80sla who checks crime maps when they're going on vacation?
Property insurance is so high now, that people are losing their houses and businesses are closing. We are heading to an economic implosion.
As a direct result of STR? or more likely the geographic location of FLA? We wonder.
Insurance is pretty cheap, just not for the suckers that live in the path of hurricanes...
..
@@killerhurtalotOr wildfires.
What gets me is the endless cleaning fees and or deposits yet one must leave the house spotless 😮
The issue is that either the renter or the owner must in some way pay insurance and property taxes if they want a "permanent roof" with utilities like electricity, gas and water. Because of this, many people-at least in California, where I currently reside-are living in tents. No taxes, rent, mortgages, or insurance. The number of people who tell me they live in their car that I meet amazes me. Its crazy out here!
I get such worries too. I'm 50 and retiring early. Already worried of the future and where its headed, especially in terms of financies and how to get by. I'm also considering making my first investment in the stock market, but how can I do so given that the market has been in a mess for the majority of the year?
A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
How did you achieve it? I been trying to stick with index funds. I feel this new interest rates hikes could crash this economy. I'm looking out for a better investing strategy, I have a lump sum that inflation is steady eating up.
Her name is “Vivian Carol Gioia” can't divulge much. Most likely, the internet should have her basic info, you can research if you like
I just Googled her name and her website came up right away. It looks interesting so far. I'm going to send a mail to her and let you know how it goes.Thanks for sharing truly!
We have an STR, that would have remained a long term rental had it not been for 2 long term tenants in a row refusing to pay the rent. The laws in most areas of the US favor tenants over owners such that the tenant can avoid paying rent for any number of reasons. After several years paying 100% of the maintenance and taxes with only a few hundred dollars of rent payments we shifted the property to an STR. Now we earn enough to cover maintenance and taxes with funds left over to upgrade the property.
That makes sense!
The laws have ruined owners trust to rent out thier property normally.
I moved my elderly father into my STR , along with another elderly fellow and Im getting state certified for elder care. It pays just as much as STR without the stress of possible party people.
My home is right next door though so it gave me tons of options.
I hear landlords complain that laws favor tenants, "No recourse on damages and unpaid rent." I hear tenants complain that laws favor landlords, "No recourse on unsafe conditions or no-fault lease termination."
I can't figure out how to legally protect owners from bad tenants AND tenants from bad owners.
@@keeperMLTgood point
@@keeperMLTdepends where you are. California and NY take tenants rights to crazy levels, whereas Arkansas treats renters as serfs lol
Good tenants are as rear as hens teeth. Entitled tenants are as common as muck. My last tenant left my property with 32 holes in the walls and 21 black trash bags full of rubbish, while cleaning it up dozens of letters from debt collectors arrived. Where is it written that society will provide accommodation to all,
I live in Orlando and this practice has destroyed the housing market for the average person or family. Housing prices tripled from 2016 and it has raised taxes and insurance costs which are now ridiculous. This is everyone’s problem because the taxpayer insures the banks that are making these loans which are purchased and securitized by Fannie and Freddie Mac! This is not sustainable and won’t end well. As soon as the law changes and it will everything comes crashing down. Soon!!
Will that include Made in China Disney world, there goes the job market. Keep the money where it belongs in the elite hotel chains so they can employ more wage slaves, happy days.
I admit that one reason I clicked to watch this was the cities in the thumbnail. None were mentioned.
+1 for useful content.
-100 for clickbait/ misleading.
Airbnb started in 2007 but the run up in house prices happened right after the Fed printed 40% of all money into existence, in less than a year, nearly doubling the money supply-- in 2020 and 2021
That was mostly debt created by congress
@@frankmarsh1159 Yes, that is why the Fed printed it, digitally.
The lockdowns destroyed us, just as I predicted
That wasn't the fault. Allowing people to simply exist during a pandemic by giving them stimulus payments isn't going to cause a lot of inflation. Instead, look no further than the record profits of big business during this time. Add to that the practice of real estate investment firms, infused with cash from these record profits, buying up every available home in cash, often over the asking price, for the sole purpose of turning these homes into short term and long term rentals, causing a rapid rise in housing prices, and creating a massive housing crisis for people that are simply looking for a place to live.
@@slartibartfast1268No,no,no,no,no...Trump printed 7 trillion dollars then Biden printed another 1.8 trillion. Yes giving money to the people is exactly what caused inflation. More money in the system equals higher prices. That's how it works...
I'm actually quite surprised. All these airBNBs are commercial ventures.... the land these structures are on is not zoned accordingly. How is it that the municipalities are not requiring these commercial businesses to tear their business building down and build a dwelling consistent with zones requirements for the area????
Easy fix if you ask me.
As someone who was forced to have lived infront of an Air BnB i can tell you that this is horrid for families. Imagine living in your home and having a house being used as air bnb where you have no clue what is going on next door where one night they could be shooting a video blarring music, at all hours for 4 days, or trafficking, or drug dealers, or just a family taking a vacation. The possibilities are endless.
Mind your business. You don't need to "have any clue" what's going on in your neighbor's home in the first place.
@@LGM090221 I'm going to steal the copper wiring from your AirBnB
Agree with this. Short term rentals have no business being in a residential area. Keep them in commercial mixed used areas. They are also destroying the housing market.
Imagine if everyone was this judgemental. 😂😂😢
@@LGM090221Gfy. If its a danger to me or mine I damn sure do.
Sold my vacation rentals at the top of the market. It was obvious that it was going to crash because the realtors were selling homes on the basis of the worth of the home as a vacation rental. There were people building 'additional dwelling units' all around me to rent them out to vacationers. This was on the coast of California. The crash is already happening and it is going to be epic.
going to be some great deals on cars and homes coming up.
Crash you say? Name thy city with this oft-predicted crash.
On the other hand, many of my classmates parents rented their beach house during the summer months by the week for years and traveled every summer. This was before Airbnb and will continue after Airbnb.
smart smart smart... you dodged a bullet my friend
I live in the Smoky Mountains area of Tennessee, and our Supreme Court has just made it even easier for STRs to be available everywhere in the state. Unfortunately, the local support workers for the 12 million tourists/year have nowhere to live, except at ever increasing long term rental rates.
A few years ago I was up in Lake Placid, NY and a business owner basically expressed the same sentiment after I asked him about every store on Main Street having big help wanted signs. There's no where for these workers to live. I've been wanting to go back to your area (Dollywod/Pigeon Forge/Gatlinburg) and the cabins I stayed in last time are insanely priced. I'm seriously considering going to one of the new Dolly Parton owned resorts instead.
Life in America will continue to get worse for the working class.
Thanks, Joe Biden!
@@edmondthompson1523 literally has nothing to do with this
bro, the working class is overseas
@@BakingBadOBX literally has everything to do with this. The Government is 80% to blame for the Economic problems of America.
Said who? It’s been getting better the last 15 years
Airbnb is just a part of the bad trends in real estate investing. Blackrock and these other firms that bought houses in 2020 + 2021 were a much bigger contributor to the rise in home prices / downturn in affordability.
Agree. Though AirBnB has its faults, there are corporations doing greater damage to the housing market.
Blackrock has been slowly and quietly offloading homes since 2018, not buying. Their residential real estate holdings are now only half what they were last time I checked.
@@downix Honestly they should not hold any.
@@shawn13mertle13 100% agreed. Used to be they couldn't.
Agree. Don't hate individual entrepreneurs when it's the corporations that are the bad actors.
I've never used AirBnB. I never really understood it. It's as expensive as hotels except you're expected to vacuum or get charged 3x the amount. It's a stupid idea. Hotels or your old school official property rentals all the way
STR has ruined single family neighborhoods by sucking up available real estate that would have been homes for families. The shortage has significantly raised the price of home ownership and should be outlawed. It's more important to provide affordable living space for families than to increase profits for speculaters that already are financially successful.
And that's why there is so much homeless people living on the streets too!!
😂 Don't worry people because it's ALL coming down...all of it.
How did zoning laws go out the windows for Airbnb ???
We are soon to experience the most devastating depression and crash ever recorded in the history of humanity. There is no way this behavior can continue on. Watch and see folks
Our culture is going to either evaluate and change our values .... or perish.
They will get bailed out
The truth is an LLC can buy up residential real estate with less bankruptcy risk than an individual owner who bears a 7 years credit burden. Beware this will probably be legislated against.
Never. LLCs are the only way to own anything now
I used to stay at Airbnbs but have stopped because of bad / subpar experiences and higher costs. It used to be a more practical option but now the silly fees and taxes make hotels a better option for me. The cleaning fee is the biggest joke, countless times I've been charged $200-$400 for a place that was not cleaned thoroughly whatsoever. I truly hope there is a class action lawsuit eventually from the bogus cleaning charge.
It's not bogus. Owners must find and keep cleaning companies. It's not an easy job to keep decent cleaners. The cleaning companies Al have raised their prices over the years. Supply and demand.
@@dawnaker725 I’m talking about the ones to at were clearly not professionally cleaned. I’m talking about spider webs, filthy floors where my feet are black walking around, stained sheets, etc. It was obvious they cleaned themselves and pocketed the cleaning fee.
Sarasota is out of control. 2019 & 20, 3br2bt was $280k -$320k, now they are $500-650k!
Well the WHOLE entire country of Australia is over 800k min starting point😂😂😂fk Air bnb n immigration..
Yep, all my rentals, the insurance and property taxes have gone through the roof !! It wasn't the ABnB that causes it..2018 & 19nwe were heading into a recession, then the 2020 political agenda of sickness followed by 5 Trillions of Direct stimulus pumped in, 10 million families allowed in rent & mortgage moratoriums which the mortgage side is just ending, the fed bought up 80 billion a month in Mortgage Backed Securities and owns 1/3 of the market now, corporate cash back massive pandemic tax credits just ending, no Student Loan repayments till.last month and 40% didnt make that payment, the Fed forced Rates to Zero at the same time. It's been insanity everywhere that is ending and we will resume into a severe recession this year, and there is no stopping it now. ABnB is just one sect that will get crushed. Lol. You see the 50 plus Luxery 4 story wooden Ternite Trap apartments they have gone up?? Mold/Mildew/Fire hazards. Thier rents are starting to crater at the same time thier insurance and property taxes are skyrocketing and they have to refinance from thier 3/4% loans into an 8/12% loan while rents crater and vacancy rises. Lol
AirBnb and other STRs should be illegal in family oriented neighborhoods. They are a freaking nuissance... I've had people playing football across my yard, pile of garbage left in the street in front of the AirBnb, and one renter drove his car so fast down the road he ran it through and into a house at the end of the street. The biggest problem in this case is the owner is not there to supervise the situation so the renters are not watched over as they are intended to be. AirBnb and other companies do nothing to check to see if the owners are supervising the rentals appropriately. Regardless of that, family neighborhoods are not a place for commercial transactions dealing with an unnatural volume of transient people. We buy houses to be in nice safe neighborhoods where you see and know who should be going and coming, keeping an eye on neighbors property for each other. AirBnb and other STR companies destroy the safety and peacefulness and peace of mind of home ownership and being a good neighbor. The enticing allure of making money with your house is a fish hook that catches many owners, but ethically it is completely wrong on both the AirBnb part and especially on a homeowner that rents there property and is not there to supervise matters. That is analogous to a hotel renting rooms and leaving the keys (or electronically unlocking or delivery of an unlock code) with no supervision on property. That leads to misuse, illegaly activities, and secondary problems like damgage to neigbor's property or peace. It is a no brainer that this should be made illegal.
I understand your concerns about the issues caused by some short-term rentals (STRs) like Airbnb in your neighborhood. It's unfortunate that you've had negative experiences. However, it's important to consider that these issues can happen in any residential area and aren't unique to STRs.
Many STR owners are responsible and use systems like guest reviews to encourage respectful behavior. Also, not all STR guests cause trouble; many are families or individuals who value and respect the neighborhood.
Banning STRs might not be the best solution. Instead, local regulations could be implemented to ensure responsible operation of STRs. This approach balances the rights of homeowners with the community's need for peace and safety.
@@joegadget670STRs are run like motels. That is a commercial use in a residential zoned area. It should be illegal.
That’s what zoning laws are for. It prevents a car wash or a gas station from being built in the middle of a neighborhood.
Many cities in the Coachella valley have already banned STRs as a result of weekend party homes.
Local govts must protect local residents. Not out of town investors turning quaint neighborhoods into theme parks.
It has already collapsed here. Someone bought my neighbors house for double what he paid for it just a year previous, and they've only rented it one time. The new owners are currently using it as storage for their RV's, boats, and other junk because they can't rent it.
where are you located? Thanks.
And you know this as fact or fiction
well its like he said, they(wealthy) are just parking their cash for now which drives more speculation and appreciation on short supply. that's why so many are usually empty and not being used. if or when the music stops and rich people find a better vehicle to park their money in.....watch out below.
when the number of people who can barely afford to use this scheme reaches critical mass is prob when the rich exit pulling the rugs out from everyone else.
Absolutely correct. An asset bubble must always eventually burst and it’s nearly always due to over-leverage.
Many asset bubbles last longer than a person's lifetime. So don't count on anything bursting, that you think is a bubble.
We have two choices. One is to over regulate and stiffle progress like a communist country or make some sensible law to allow all to have a shot in a level playing field. If we are a capitalist country then allow the market to do its thing and every 8-10 years the tide goes out and reset the market.
AirBnB was indented to rent out a spare room or a corner in the living room. However, greed is always the driver to misuse a system. AirBnB's should only still be single rooms or houses that were specifically build for this and do not take away any living space for the locals. I had a house in Las Vegas next to an AirBnB. It was horrible as there were parties till 6 in the morning in a residential area were people live to work. They need to crack down way harder on this fraud!
Been saying this for years
Live next to an air bnb house and you will understand just how destructive this business is to people’s livelihoods
it's all going according to plan...you will own nothing and be happy
Better get your house into a LLC
They have driven a simple 1500 sq ft, no frills home to UNAFFORDABLE. Absolutely ridiculous sq ft pricing. I hope it pops.
This is very easy to fix. One of the rules the community where I live in Florida has, prohibit the short rentals or AB&B's so anyone with that business intention has to look somewhere else.
It is greed, greed, nothing but greed !
I’ve never been a fan of Airbnb
They remind me of timeshares
The Villages Florida a retirement community is having problems with these short term rentals not obeying community regulations.
I have stayed in condos rented through rental agencies. I have never stayed an AirBnB type rental and never will.
Same thing.
Why are these landlords treated as individuals and not businesses......
Why are people renting these? I dont get it,.
I don't want to live on this planet anymore.
Don't give up now! Things are starting to get interesting!
I don't even own a home but hearing horror stories of bad tenants for long term rentals makes me say F the system. If the law favors bad tenants who can skip out on rent, etc, then ppl will find a way to work around that horrible system. Too bad too sad.
We used to have a cabin in the north coast of California (2009-2017.) From a pure investment perspective, it would have made more sense to rent it out as a long term rental, but we chose the short term rental option so that we could use the property for ourselves part time. I have a hard time believing the income numbers suggested by Air DNA in the video. It may have been accurate during Covid, but now with hybrid work coming back I would think fewer people are doing short term rentals. For us, the cabin was only rented out during the summer and holidays. The net income was only enough to cover property taxes and utilites.
The data from Airdna is total BS because for example that house is not only very far from the beach it’s also in a bad neighborhood. Nobody with any sense is going to stay there. Maybe a naive Airbnb guest would book it but that’s hardly sustainable and would likely backfire.
I think the numbers are too high as well. But even if the cap rate is only 10% instead of 20%, it probably still makes sense (at least in the short term).
I dont understand how banks can't monitor STR websites for mortgages they have lended out as primary homes. Seems to me it's quick and easy to identify fraud. Hold these people accountable! At least have them pay a penalty or something?
You have to live in the house as a primary resident for 1 year and a day.
You also can be very clever about how to design a separate space for yourself to live there while you Air BnB it for the rest of the property..
You want banks to police anyone?!? Are you high?
how about you guys just bail me out in case it goes bad?
They use the Plaid banking technology to see if AirBNB is making payments to homeowners using a homeowners' loan. Car insurance and loan companies are doing the same thing to make sure Uber drivers are insured as commercial vs. personal.
Air BnB is f’in gross.
STRs have been around for decades. Airbnb did not invent the concept.
They helped to inflate home prices to unaffordable unreal prices so I hope to see them all go belly-up
Everyone wanted to be Grant Cardone 10x ing tf out of everything, real estate being most notable. Vangaurd, Blackstone etc are the real cancers here.
ABB Officially allow, HIDDEN CAMERAS INSIDE THESE HOMES - to watch your every move. I will never stay at an ABB.
Love hotels! 100 a night in Seattle anytime of the year. No cleaning fees. Every neighborhood.
In summer? Metro Seattle hotels average $300+ per night.
@@GeneDexter Even in summer I can find rooms in Seattle for $100/night. May not be right next to Pikes Place, but are along the Link, so can take a short rail trip to the market.
I hate eating out and prefer to do all
My own cooking. Some hotels do have small kitchens, but the noise right outside the door? Yikes. Stayed in a gorgeous VRBO apartment on a winter vacation but then a nice clean hotel while driving home. Yikes. Noisy.
@@vikker8274Extended Stay Hotels are there for you.
Demand is zero. Supply is zero. Even a small increase in supply could crash the market. A recession would skyrocket inventory
Excellent video. I am in the commercial real estate finance business for 16 years. (Anything non owner occupied is commercial real estate, as well as any house with more than 4 units). DSCR loans require 20% down, so investors aren't as likely to walk away from a property like they were in 2008. In addition, if the economy tanks, they can always rent it out long term and get a 5 cap, covering their mortgage. Vacations are discretionary spending, and when people can't afford their living expenses, the first thing that gets cut is things like fast food and travel.
If it wasn't interest rates returning to normal, then it would've been increasingly restrictive home sharing ordinances (HSOs) that would've sunk AirBnB. It was always an incredibly risky business model that depended on the near-0 interest rates that resulted from the last housing collapse. Hopefully governments have learned their lessons this time, and will give no bailouts to any of these companies. Just let investors take the haircut.
Airbnb is an incredibly difficult business where the city makes a ton of money because it is not treated like long term rentals. The city collect sales tax on every booking. The home owners (LLCs) then have to file taxes using a 1099 at the end of the year. I was in this business two years ago and have seen many home owners take a nose dive. LTR are way more easier and profitable and I am a much happycamper now that I leave this industry. Floridians are complaining but if not for theses businesses and millions of tourist every year, they may have to use ATVs to travel on dirt roads with very poor schools, etc.
The Airbnb platform should be taxed 400% to end the entire industry.
i like it, after having my houses torn up again and again i now clean up after every day or two ,
I am a long term (30 plus years) commercial real estate broker, and my wife and I have renovated 12 homes together. I have four kids seeking home ownership. We are seeking a warm weather second home as a precursor to a retirement home. I have specifically been following Sarasota since the New York Times Magazine article of 2 or 3 years ago detailing the presence of the Mid Century Modern architectural style that originated and is prominent there. This report is scholarly and a super good quality explanation of the causes and effects of STR industry on home prices in some markets. Thanks for making us all better informed.
I’ve never stayed in an Air BNB due to cleanliness concerns. No way do they wash their sheets at the same temperature as the Hilton does.
Truth!
I just spent over $800 to stay one night in a hotel in Manhattan NYC. It was one tiny room with a small bathroom. These crazy high prices for NYC Hotel tiny rooms help drive the need for Air BnB.
There should be a tip line to turn in the those committing mortgage fraud.
Don't buy it. This is largely prop-a-ganda. The real reason for higher prices is huge companies, like Blackrock, buying up properties using free money from their buds at the Fed, so they can eventually own everything and control rental prices. Unfortunately for them, airbnb gives the little guy an opportunity to have some independent income. Another reason airbnb is more attractive (to mom-n-pop investors) than long term rentals, is that the laws in many states are grossly imbalanced. They coddle delinquent tenants while bankrupting landlords who don't have the clout to influence judges. Of course the laws also favor banks, who get to foreclose on bankrupt landlords, then turn around and sell the properties. An around and around it goes up the spiral staircase to make the (extremely) rich, richer.
This is nothing new. Folk used to do it all the time during the thirties and forties. If you couldn't afford a house or you were just traveling through some place and you didn't want to be bothered with the hotel, you rented a room in somebody's house.
Yep. Boarding houses.
The problem is the scale. Small scale is fine. But when it happens large scale, it takes the housing stock away from the typical person.
I live in Orlando. Because of STR's Orlando, Kissimmee and Davenport (FL) have become the New Las Vegas.
Tourists use to visit here attracted by mostly the themed parks. Spending money on shops, restaurants etc
Now all types of low life strange people are coming with welfare and stimulus money to spend 2-4 nights inside an airbnb house with hookers, smoking pot using drugs etc
This type of predatory crap tourism brings nothing good for the city.
Not only that but because of our irresponsible politicians non-stop printing money , beside our trillions of public debt, dollar worths basically nothing nowadays and thats a mistake that people think house prices, groceries and cars skyrocketed. But it is your money that devaluated to the bottom and beyond folks
Airbnb's aren't the primary reason for home prices rising. In high-tourist zones, that's certainly true, but not in general. The larger culprit is our banking/monetary FIAT system, and loan incentives, which create rampant speculation. Airbnb owners fuel rampant speculation, but prior to that, our entire banking system does the same thing. Airbnb's certainly don't help, but printing 40% of all the dollars that have ever existed within a four-year period, and artificially suppressed interest rates for years on end...that's the source of it all.
Why hasn't the price of STRs dropped with an over saturation of rooms for rent? How are hotels still charing 120/night for slum shacks? And they still seem to book up in spite of the emergence of online teams meetings which eliminate the need for a large portion of business travel.
What id like to know is how leveraged the STR market is. Obviously many investors are conservative but you just know some people got in deep. Honestly for the last decade the more debt you took on the better you have done. 27 mortgages are fine- until they aren’t. The industry has done nothing but grow for over a decade. I wonder how many hyper-leveraged host get wrecked once an inevitable recession hits.
I’ve popped on Airbnb in my area, one guy has 63 properties 👀 another lady 20… they’re uncooked… nearly if not all of them. There’s so many… they said they rented to travel nurses during C.void, but now that, that is over… what happens?
Unbooked *
Bye Bye Air B & B and it serves every last one of you who rented out your homes, or over leveraged your personal financing's to get into this bubble of rot.
I worked for a guy in Sarasota in the 80s. He had built his small concrete block house himself for 16,000. Out of curiosity I looked it up and it is now 400,000 in a neighborhood of similar small (like 800sq foot) houses.
STR income should be taxed just like hotel room income.
Wrong analysis. Those people are speculating with houses and want to make a fortune with appreciation when they sell. They don't buy houses "because" of Airbnb.
They just use airbnb to make some money while the houses are "parked" increasing in value.
The main problems are the huge distortions in the American capital markets (negative real interest rates) and an obsession for owning big houses. Houses should not be primarily assets for investment (flipping houses). In the whole world execpt America houses are mostly safe and boring investments for people like retirees who want to get a steady and modest (6% aa) income from long term rent.
Also, without Airbnb, apartments in tourist locations used to be empty for 90% of time. They were not sold or rented to families needing a home.
Airbnb just reveals deeper issues.
Starting to lose faith in a housing dip.
Yeah, it’s tough waking up from being an idiot
Why?
Aren't you starting to see significant softening where you are? Here in the DC Metro area, price cuts are happening on at least 33% of the houses for sale. And this really just recently started around September. Before that, everything was selling quick for asking price or over.
I things things are just starting to get rolling.
Every good thing comes to an end , it always does, when greedy governments get involved.
The housing dip is coming. The issue is you will need cash to capitalize
Housing rolls over, super slowly. Just need to be patient, not much else to say
Our lone airbnb experience was horror show. We were in update NY in middle of winter and home lost its power in middle of night because of light winds. I experienced what it really means to freeze to the bone. We had a 3 year old with us. Never again.
In the UK, AirBnB are now forced to send all the revenue gained from rentals to the Inland Revenue...the Tax Office.
It looked like a good, tax free side hustle, but all trasnactions go straight to the tax office.
When there is a recession or depression, the only way ANY Govt can get extra cash is by 2 ways.
1. Raise Taxes.
2. Hire more Tax collectors.
Whatever happens in Europe will migrate to the other side of the pond. Nothing more criminal than Tax cheats....Govt's hate them.
Just like Pop Larkin. 😉
Not in the US. The billionaires are saved from that sort of taxing. Bah!
Why would you rent a place that is lined wall to wall with cameras recording everything you do including watching you shower?
We have probably stayed in our last AirBnB. The cost wasn’t worth the stay, especially since we had to virtually clean the place. Hotels are a better choice for us.
I'm hoping that the Airbnb crash will bring a much-needed adjustment to real estate. Although I enjoy having a property that's worth three times what I bought it for in 2016, I believe that real estate values are artificially inflated and the bubble needs to be burst.
Nightmare hosts with fake reviews finished it for me, i liked being able to stay in these residential areas.
In our Sierra Nevada town, locals can't find rental housing because so many units have been turned into AirBnbs. Personally, I won't stay at an AirBnb -- I can get a better 2 bedroom hotel suite with a kitchen in the center of most cities without have to pay outrageous cleaning fees or worry that my family is being spied on by hidden cameras.
Was always curious why some beach and downtown high-end condos never had any lights on at night. Huge buildings with no activity. Cities allow these developments rather than requiring some smaller mid range condos that would serve as actual residences and would contribute to the vibrancy of the neighborhood.
Lately, there has been much focus on STRs as the cause of rising rents and housing cost. But in reality, STRs are really just the scapegoat bogyman for hosing shortages. People flock to STRs because they are in need of immediate, no hassle housing. Whether they are tourists or homeless people, the motive is the same. Eliminating STRs will cause a spike in hotel pricing. What it will not do is have a huge effect a lowering of LT rental cost. That is because STRs are not always repurposed LTRs. They are often (if not mostly) unused vacation homes and spare rooms. They are also new homes which investors built to profit off the housing shortage. Please, somebody please show me the NYC landlord who reduced rents based on the AIRBNB ban.
Yeh prices have become ridiculous gone back to hotels, room cleaned everyday restaurants on site and more safety.
couch surfer was the precursor tbh, and the vibe was completely different and geared for backpackers who needed somewhere to stay. The cultural exchange was worth way more than the $$. I miss those days.
I would rather get a great free breakfast than have to wash the sheets and towels...
Your AirBnB is one vote away from being insolvent
2 HOUSES ON MY BLOCK WERE BOUGHT TO BE AirBnBs. Both have hosted numerous porn shoots. We chased them out with multiple complaints, one turned to a normal rental, the other is For Sale
Ive seen highs and lows on Airbnbs, and in areas where they think they need rates of a Hotel, Id rather stay in a Hotel, come and go as I please. Ive noticed some areas are high as a Hotel and some are low. Berkeley CA was cheap and San Pablo, but NJ was expensive. What was really cheap one time was Hamilton Ontario Canada, because of the Exchange rate on American funds. SO If you just need a place to stay for long term, like without a job, Do Canada, its near the US Border, only like 20 minutes from Border. You might be able to work there, or nearby in Buffalo, NY or Niagara Falls, NY, but it costs about 6 dollars to cross bridge.
The short term rental was a solution to a problem that didn’t exist. We already have plenty of hotels and every other family owns a RV. Plus they make horrible neighbors.
🤔 every other family doesn't own an RV. It may be a local thing for you.
I bought property to build an Airbnb in 2019. I had designed and get ready to build on the property, but with higher construction costs and new resistance from the County on the proliferation of Airbnb I decide to sell the land at more than what I bought it for. Best decision of mu financial life. Plummeting land values because of all the people who had the same thought of building and then realized the cost and resistance from the community.
There’s a new bill started in the Florida Senate, SB280. It will literally strip Home Rule away from city governments across the state of Florida.
The Marco island residents had put a referendum on the last ballot to have a strict rental registration very similar to Indian Rock Beach. It was past into law according to our city charter. Our council voted to delay implementation to Jan 24.
The Florida legislature passed SB250 which our council was told by the city attorney nullified our ballot referendum that just past.
Remember that DeSantis is signing these into law. He is in fact helping to destroy neighborhoods.
The Florida League of Cities opposing SB 280. Many city mayors and council members have had enough of home rule being stripped away to benefit the lobbyists.
Cleaning fee, maintenance fee, tax, adds up fast; Might as well be in a hotel !
No way. The owners just pocket the cleaning fee. They never clean like a hotel does.
I agree that the fees are astronomical and well beyond what they should be but the benefits such as having access to a kitchen to cook rather than eat out can significantly add up for someone on a vacation.
Greed always ruins any good thing. >5 years ago we had a lot of great experiences at ABB places around the country... today it's cheaper and easier to just hotel it.
AirBnB protects the vendor. The vendor can set and enforce all rules. If the vendor says no parties, then it’s no parties.
If the tenant breaks that rule they can be forcibly (police) evicted on the sport, without a refund.
AirBnB vendors, know your neighbours. Talk to them. They can help you manage your property so that everyone wins.