Airbnb bookings dip in Austin, San Francisco prompting ‘doom loop’ fears
Reventure Consulting and Reventure App CEO Nicholas Gerli says the housing market is in a purgatorial state on Making Money.
Airbnb bookings have declined over the past year in cities like Austin and San Francisco that have historically been popular destinations for short-term rentals, prompting concern over the economic uncertainty wracking urban areas and the prospect of a «doom loop» developing.
Nick Gerli, the CEO of Austin-based Reventure Consulting, recently tweeted that the «Airbnb collapse is real» and that, «Revenues are down nearly 50 percent in cities like Phoenix and Austin.» He went on to say, «Watch out for a wave of forced selling from Airbnb owners later this year in the areas hardest hit by the revenue collapse.»
Gerli cited AllTheRooms data which showed a 48.6% year-over-year decline in the average revenue per available listing in the three-month period ending in May for the Austin metropolitan area.
He attributed the decline to the end of pandemic-era migration, tweeting: «The pandemic is over. Fewer people are working from home / vacationing in states like Montana, Texas, and Tennessee. So the demand is way down. Just as the Airbnb supply went way up. So you get a crash.»
SAN FRANCISCO, NEW YORK FACE ‘URBAN DOOM LOOP’
A decline in short-term rental bookings at home sharing giant Airbnb have fueled concern about the impact on the real estate market and a «doom loop» facing urban areas. (OHN MACDOUGALL/AFP via Getty Images / Getty Images)
An Airbnb spokesperson told FOX Business, «The data is not consistent with our own data. As we said during our Q1 earnings, more guests are traveling on Airbnb than ever before, with Nights and Experiences Booked growing 19% in Q1 2023 compared to a year ago.»
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