The decline of Airbnb has raised concerns in the housing market.
Bestselling author and one of America’s most renowned financial gurus, Robert Kiyosaki, has expressed worries about what he describes as Airbnb’s decline potentially becoming the cause of the downfall of the American housing market.
Last week, Airbnb, the world’s most famous home rental platform, was impacted when New York City authorities implemented a new series of restrictions. These include requiring short-term renters to register with the city and homeowners to stay with their guests during their stay.
The aim of the new rules was to put an end to free-for-all situations for homeowners in the city. Officials stated that this has led to an increase in housing demand and a surge in prices. This is a serious situation as inventory remains low not only in the city but across the country, especially in New York City.
After the new rules took effect on Tuesday, holidaymakers heading to the Big Apple could see fewer Airbnb listings. According to Sky News, city officials said that out of the approximately 4,000 applications from homeowners interested in registering as hosts, fewer than 300 were approved.
According to Wired, following Tuesday, New York City had 70% fewer available Airbnb apartments. While this may be a success for those who believe that housing should be available only to city residents, Kiyosaki has issued a stern warning about potential repercussions on the housing market.
In a recent post on his Twitter account, formerly known as X, Kiyosaki claimed that “Airbnb and real estate market will be the cause of the downturn.” He emphasized that this crisis could financially benefit investors and homebuyers. Kiyosaki said, If you want a new home, your happy days are close by, according to Kiyosaki. The same is true for rental property.”
He continued, “Disaster is a great time to get rich. Success!” Many users viewed his message, with numerous expressing gratitude. As a result of the success of his 1997 bestseller, Kiyosaki founded the Rich Dad Company, which promoted attractive real estate opportunities.
Despite rising interest rates and increasing prices, the housing market has remained strong, although Kiyosaki and other experts have previously issued warnings of an impending crisis. This could also be said for Airbnb. In June 2023, a viral tweet on X suggested that the company had faced an approximately 50% decline in revenue per listing in cities like Phoenix and Austin.
Nick Grealy, CEO of ReVenture Consulting, who shared the post, encouraged many homeowners to consider selling. According to a major study by short-term rental intelligence firm AirDNA, compared to the previous year, Airbnb’s revenue per listing had only declined by 3.6%.