Is Airbnb Going Bankrupt??

is Airbnb going bankrupt??
This Week's Top Headlines:


I've actually had a few people forward me the link asking my thoughts on it. 

As you may remember my last market update talked about one of the main sources of potential new listings being "shadow inventory", which are vacant houses (including vacation rental homes).

There are currently nearly twice as many homes that are on Airbnb and VRBO than are currently listed for sale on the market:


 


So if Airbnb owners started listing their properties it could have a huge impact on the total inventory, and as I've been saying for awhile now the low inventory is the only thing holding us back from a major market correction.

I still believe that there is great potential for a surge of new listings coming from that source, but is it going to come because Airbnb is suddenly crashing? 

Maybe. But I don't think it's as dire as some are making it out to be. AirBnb actually claimed a 19% increase in bookings the first quarter of 23

Sure, they have a vested interest in denying their users are losing money. And yes, their stock did dip by a couple points after that tweet went viral, but it rallied a day or so later:


 


AirDNA, a site that tracks short term rentals, shows a decline of just single digits, "driven primarily by a decline in occupancy and slightly offset by higher rates" according to their chief economist.

So I'll leave it up to you whether you want to subscribe to the "AirBnb is crashing" or the  "another example of clickbait" crowd.

Whether owners freak out about this news and start listing their property or not, I'll be sure to update you 
so stay tuned!

as always, 
my promise to you each and every week is to act as your personal assistant and help you understand what's happening in the world of real estate.

If there's something you'd like me to include in a future newsletter, please let me know!

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