The bubble is bursting. ZeroHedge have been warning of this for months
ZeroTrust in ZeroHedge.
It’s pretty well-known in the real estate biz that the easy money in AirBNBs has already been made. More recent owners are experiencing their first slowdown, and those who bought on “margin” (they almost all did) are realizing that sometimes the income doesn’t cover the expenses. Some of those, more and more each month, are opting to get out of the business. That’s why those units are being placed on the market. The problem is that with mortgage interest rates so high, the monthly cost to a buyer is MUCH higher today than it was 2 years ago. And most buyers are looking for lower prices (to compensate somewhat for the high rates) before they will buy. But it isn’t necessarily a large macro issue as airBNBs were still a relatively small part of the overall RE market. In fact, liquidated AirBNBs may even help the residential RE market somewhat by providing some lower priced supply to alleviate these higher mortgage rates.