🏠 We hate to burst your bubble...

Will Airbnb be to blame for the next housing crash?

December 11, 2022

“Unapologetically self-indulgent, lazy, slovenly, or greedy, typically in a way that rejects social norms or expectations.”

- The Oxford University Press' definition of "goblin mode," which they named the 2022 word of the year.

Will Airbnb be to blame for the next housing crash?

The platform has been swelling with new hosts — 62% of Airbnb's active listings have been added since 2020. But investors baked an assumption into their business plans: that consumer demand wouldn't waver.

Well, overnight guests are fed up with arbitrary fees, chores, and poorly managed properties; markets are shifting away from the rural areas that were popular during the pandemic; and over-saturation on the app means less bookings for each owner.

Should the short-term rental bubble burst, the property market may become inundated with foreclosures on former Airbnbs, which means homebuyers may actually have a chance to buy.

SPILLING THE (REAL)TEA

Searching for a waterfront estate to dock your yacht in front of? Knight Frank predicts Miami will be the second-best luxury market in the world in 2023. What's in first place? Dubai.

Italy wants to pay you to move to a small village in Puglia. To pocket about $30,000, all you have to do is purchase a property built before 1991 and commit to restoring it.

Finding an Airbnb in NYC will become a tad trickier. New rental regulations in the city will result in the removal of about 10,000 listings in the New Year. 

The jig is up! Los Angeles is cracking down on short-term rentals that aren't complying with the city’s home sharing ordinance, which is nearly half of the recent listings added to Airbnb and Vrbo.

Chicago will spend $3 million on tiny homes for the homeless population. The neighborhood will be made up of 500-square-foot homes spread across city-owned lots.

HOUSING MARKET PREDICTIONS

Redfin has forecasted a few 2023 real estate trends. Here are some of their most important predictions:

01 — Fewer home sales: Inflation is driving down demand, and if it continues, Redfin expects sales to drop 16%.    

02 — Mortgage rate declines: We could see mortgage rates dropping below 6% by the end of 2023.    

03 — Home-sale price drops: The median home price could drop 4%, but homebuyers' monthly payments would still be 63% higher than they were in 2019 before the pandemic-driven buying boom.  

04 — Monthly rent falls: Rental prices are predicted to drop due to an uptick in vacant units. 

05 — Investor activity cools down: Waiting for the right moment, investors will press pause until the second half of the year when home prices are lower.

WHAT'S BREWING

đź“š What we're reading: Spent a little too much on holiday gifts? That's OK because Ramit Sethi, author of I Will Teach You to Be Rich, released a journal that will help you to "design your rich life."

🎧 What we're listening to: This Holiday Instrumental playlist will be playing in the background during all of our Zoom meetings this week.  

đź‘€ What we're watching: Volume I of Meghan Markle and Prince Harry's Netflix documentary as we await Volume II, which comes out on December 15. 

đź›’ What we're adding to our shopping cart: A few last-minute stocking stuffers! 🎅

HOME AWAY FROM HOME FOR THE HOLIDAYS

Celebrate the season by cozying up with a cup of hot cocoa in one of these cabins!

California A-Frame
Oregon Estate
Alaska Hotel
Utah Ski-In, Ski-Out 
Maine Treehouse

TRAVEL TRENDS

Airbnb revealed the top travel destinations from 2022 and the platform's trend predictions for 2023. Here are a few we found the most interesting. 

From late spring to early fall, the top travel categories booked in the U.S. on Airbnb were:

  1. Pool 

  2. Beach

  3. Iconic City

  4. Tropical

  5. Countryside

  6. Beachfront

  7. Cabin 

  8. Surf Spot

  9. Lake House 

  10. Ski Destination 

The most-searched global destinations in 2022 were:

  1. Bangkok, Thailand

  2. Sydney, Australia

  3. Málaga, Spain

  4. Seoul, South Korea

  5. Melbourne, Australia

  6. Itapema, Brazil

  7. Angra dos Reis, Brazil

  8. CapĂŁo da Canoa, Brazil

  9. Auckland, New Zealand

  10. Brisbane, Australia

Airbnb predicts the top international destinations of 2023 will be:

  1. Málaga, Spain

  2. Sydney, Australia

  3. Melbourne, Australia

  4. Auckland, New Zealand

  5. Bangkok, Thailand

  6. Queenstown, New Zealand

  7. FlorianĂłpolis, Brazil

  8. Porto Seguro, Brazil

  9. Perth, Australia

  10. Salvador, Brazil