29 June 2023
A housing bust of potentially catastrophic proportions looms as the short-term rental market faces an “Airbnb bust” that could rival the magnitude of the 2008 Subprime Crisis in certain cities. The downturn, which began in late 2022, has led to a drastic 50% decline in revenue for Airbnb operators, signaling an imminent crisis. This alarming situation arises from a combination of dwindling post-pandemic travel demand and an overwhelming surge in Airbnb supply, resulting in substantial financial losses for hosts. The projected wave of distressed selling by Airbnb operators in 2023 and 2024, particularly in the cities most severely affected by plummeting revenue and excessive supply, could create a housing market collapse reminiscent of the 2008 Subprime Crisis.