The “Airbnbust” Is Instructing Rich Folks A Laborious Lesson In Capitalism

Two years ago I bought a house in Palm Springs and renovated it and last January I put it on Airbnb when the house was finally ready I was so excited to see how it would do on Airbnb I'm not going to sugarcoat it you guys it we lost money we uh it's not looking good that's an Airbnb host by the name of Shelby church and her experience seems.

To be replicated among other Airbnb hosts who have noticed that their bookings have gone down considerably in some cases not a single booking for the rest of the year now what's going on hmm maybe the market might be oversaturated with short-term rentals hopefully they're not over leveraged and they don't lose those homes okay.

I know I'm being super Giddy and like ridiculous about it but I can't help it think about what this means guys the short-term vacation rental market is oversaturated these are typically apartments or single-family homes that did mortgages or long-term rentals but they got snatched up by white collar workers wealthy people who are like I.

Just want to make some passive income in the middle of a housing crisis and a housing shortage okay great so now we have this over saturation of these short-term rentals and the people who invested their money in it hoping for some passive income aren't getting it they're not getting any income right now because again the market is.

Oversaturated so let me give you some more details no no not yet not yet so this all started with a viral tweet I got to show this to you Texas Runner DFW quote tweeted it and said the Airbnb bust is upon us and in it there's a an Airbnb super host who says has anyone seen a huge decrease in bookings over the last three to four months we went.

From at least 50 occupancy to literally zero percent in the last two months I'm just curious if this is something only going on with my property or if other people are seeing similar things I'm in Palm Springs where are you located well uh no the uh occupancy has actually declined quite a bit uh Jim Ewing uh who is the person who made that post uh was.

Reached out to by Time Magazine and he says that his property in Desert Hot Springs California dropped from 80 occupancy to zero percent this past month and has hasn't rebounded since quote we haven't had a single booking since June he says so some of these Airbnb hosts and it's not just Airbnb it's other uh platforms that have the.

Short-term rentals like verbo for instance now they're thinking about either selling the properties or instead of doing short-term rentals doing long-term you know normal rentals for people who need housing which means it could increase the supply of rental properties on the market and that could lower the price of rentals if things.

Work out the way they're supposed to in an economy where things don't seem to make much sense more and more every day but we'll see what happens all I'm saying is Mark is oversaturated sorry yeah I think the Emoji you were looking for is this oh yeah the yes the tier okay so uh here's the situation I love Airbnb.

Set it out loud uh and uh and I like going to those whole like it's like having a whole bunch of different homes in different places so it's great okay does it have some uh issues lately absolutely okay so we did a story a little while back about now the owners are attaching all sorts of conditions right they give you a cleaning fee all.

Right I could live with a cleaning fee I get it you got to clean up the place right then they started jacking up the cleaning fee and I was like yeah that cleaning I mean who are we bringing in here is the wolf coming in here to clean up did we murder someone in the basement why is this cleaning fee so large but then they have a laundry literally a.

Laundry list for you right like like do do the laundry wash the dishes take out the trash basically clean the entire property and pay a cleaning fee which but why why would we do that but that's a little bit of a separate issue but I I can imagine that no no it's not a separate problem oh okay okay so um so that's exactly what I was going to.

Get to and they're like okay and my cat's there and you gotta fleece sit for lice and then okay make sure you spread the lights on yourself before you leave I mean it's like this giant list of things you have to do right and I'm like be your God damn Butler like what the hell is this right so a lot of people are turned off by that and then I I kept.

Reading to see like all right well there's an oversaturation so obviously they're going to lower the prices it's called capitalism look into it but it's called free markets look into it right no but they didn't look into it refused to do it so it turns out they haven't lowered the prices at all and they're like oh my God about this house and I.

Demand to have it filled at all times and I demand it you do my laundry and dishes and at mani pedi of course I'll be stopping by during your vacation and I want lower prices at all no that's not how it works that's not how it works but it's the entitlement mindset you would expect from someone who wants to like just sit around and collect passive.

Income right and look can I say like side note there is no such thing as passive income it's all a dream right unless you're invested in stocks and they pay you dividends yeah well look that's a little bit easier because you can go into but when you're doing an Airbnb you got to go get the thing you got to set it up.

You got to arrange this you got to arrange that and then when you have to do it then you're like oh my God I don't want to do that I just want to be passive income I mean unless yeah but that's the thing unless you expect the people renting your short-term rental to do all the work for you which is what's been going on no I know but so it's.

Called sad day move on with your life and figure it out am I supposed to cry for you when you won't lower the price I'm not crying for that right and like you won't lower the number of ridiculous conditions that you put on the houses you can't say like oh this is capitalism and I I get to charge as much as I want but if things go south no I'm still.

Charging as much as I want no it's called supply and demand take an econ class these numbers are also outrageous and there should have been a regulatory effort to prevent the oversaturation that we're seeing especially since we're dealing with the massive housing crisis and shortage Market analysts say many U.S airbnbs are sitting empty because so.

Many wealthier people and investors listed short-term rentals on the site in the wake of a pandemic fueled Boom the number of available short-term rental listings in the U.S skyrocketed to 1.38 million in September that's a 23.2 year-over-year increase according to rental analytics from Air DNA.

I just again look if if we were swimming in houses right like there was just an abundance of homes just we don't know what to do with it there's so many homes then okay yeah sure 1.38 million short-term rentals in September would be fine I guess but that's not what we're dealing with like we're I mean we see.

Conversations online where people are like fighting each other or over are you a NIMBY or a yimby you know are we building enough how like the housing exists it's just that the housing has been snatched up by people looking for passive income like it's insane no no I don't mind any of that look if you want to do regulations to make sure there's.

Affordable housing in your neighborhood that makes sense to me right but if you on Airbnb and you have normal regulations great right my point to these folks whether they were just Rando white-collar folks who bought us a million dollar home and wanted to do an Airbnb with it or they're by the way institutional.

Investors that you don't get to 23 just on some random White Collar dudes okay institutional investors came in and snatched a bunch of homes well guess what you're not guaranteed a profit it's called capitalism so that's why like you can't say I want the upsize of capitalism but I don't want the downsides of capitalism okay and if the.

Market goes down I demand my profit be protected that's not a thing it's not a thing you lower the prices and if that winds up costing you money you eat it that's how it works and there's no mani pedi for you you can't like be like yeah free market and they go oh no free market somebody protect me thanks for watching The Young.

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