How the Airbnb ‘gold rush’ could impact the homebuying market

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“Over the last three years in the world of real estate investing, short-term rentals have been sort of a gold rush,” says Tony J. Robinson, co-host of The Real Estate Rookie podcast.

Similar to the actual gold rushes in the 19th century, he says, many investors were drawn to short-term rental investment without the appropriate tools or skills.article in Bloomberg Markets

“At a national level, a wholesale dumping of Airbnb houses would be needed to create a crash,” said Jaime Peters, assistant dean of accounting, economics and finance at Maryville University’s John E. Simon School of Business in an email interview. Geographically, these new listings are not evenly distributed. The Phoenix and Scottsdale market saw a 44% increase year over year, while Las Vegas saw a 36% increase in new listings. Meanwhile, these Sun Belt cities are now experiencing some of the fastest-dropping housing prices in the country, down 4.4% and 4.8%, respectively, from their peaks in the spring, according to AEI Housing Center.

Robinson, who manages 30 properties across the country, shares similar concerns about a potential slowdown in demand for rural vacation rentals.

 

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