The issue is that either the renter or the owner must in some way pay insurance and property taxes if they want a "permanent roof" with utilities like electricity, gas and water. Because of this, many people-at least in California, where I currently reside-are living in tents. No taxes, rent, mortgages, or insurance. The number of people who tell me they live in their car that I meet amazes me. Its crazy out here!

Short-term rentals were neat for a short while, but now their fees and hidden costs make hotels more affordable than short-term rentals.

I used to love staying at AirBNB but I quit using them when the cleaning fees became equal to or higher than the rental fees. Greed ruined a great idea.

Last time I rented an Airbnb, they literally made us clean the entire apartment, wash all of the dishes and still complained that we left a large plate in the sink and gave us a bag rating. It was no more room in the dishwasher so we hand washed it and left it in the sink to dry. They accused us of smoking cigarettes and leaving cigarette buds everywhere. None of us smoke. This year we’re just going to go to a proper resort and skip all of that bullshit.

I just finished my last Airbnb stay ever. The place was an absolute dumpster fire: unclean, unfurnished except for the bare minimum, nonfunctional just about everything, broken plumbing, electrical code violations, an unsecured property, constant noise intrusion, and just filth and a general state of advanced decay. The owner was clearly trying to milk it for cash while dodging responsibility. Trying to get some satisfactory resolution from Airbnb has turned into a nightmarish quagmire. From now on it'll be long-stay hotels where there is at least some minimum standard and accountability. I"M DONE. 😡

I’m GLAD these home rentals are starting to become illegal. They really messed up affordable housing! I make six figures and I STILL can’t afford a decent home.

After they doubled my rent in south Florida, I went into debt, ruined my credit, and I was eventually forced to live in airbnbs after I realized I was going to get evicted if I didn’t leave and try to find another apartment. Due to credit and income requirements, I couldn’t get approved for a place, (even in North Carolina) with these huge companies that own all the complexes, and a private landlord would want such a huge deposit, I could never save up for one. The airbnbs were also 1.5x what my rent was in 2021, and it has been the most stressful year of my life - I really did start to realize it was partly because these companies exist that I was having such a difficult time getting out of this situation. (I’m lucky that my family and friends started to realize I needed help, and I wasn’t just messing up my life making stupid choices. My income has been steady, but in this economy, people don’t realize just how close they are to homelessness if something like a rent increase suddenly happens to them)

The outrageous cleaning fees and expecting the renters to be maids ruined their business. The corporate greed of the STR's is coming full circle.

There are a lot of 30-something real estate "gurus" that are going to get their assess handed to them. Over leveraged so even a15% vacancy rate will wipe out their entire portfolio

Loved Airbnb at first…….thought it would replace my hotels for business travel. Now, years later I am 100% back to hotels as the value of Airbnb is no longer there (and some bad experiences made it not worth the risk)

The thought of inviting a total stranger into my home for extra $ is frightening.

The fees have become outrageous. It is so much easier to just stay in a hotel.

We have sooooo many AirBNBs in our little neighborhood. Our home prices jumped from $300k to $725k in 6 years. Palm Beach County, FL. Our property taxes and insurance have skyrocketed.

People buying homes using other homes that they put a zero down payment on as collateral and repeating this process over and over.. what could go wrong ?

Property insurance is so high now, that people are losing their houses and businesses are closing. We are heading to an economic implosion.

STRs and corporate investors have got to go. We need homes to live in, not to used for rich people to extort us to get richer.

I hate ABNB. The very first Airbnb I ever used was in the hood. That's one of the fundamental flaws with Airbnb. If you visit a new town or area you have no idea where you'll be staying. Not to mention she had cats and I'm highly allergic to cats. It was the worst experience. I haven't stayed in an Airbnb since. That was 2013

I have three small accessory dwellings ( two mongolian yurts, and a tiny house) on our farm. They are rustic, funky, and unique. I started an at home farm stay business.This was the essence of airbnb when it started. It allowed me to raise both my kids at home (not in day care) and provided an income well above what part time wages could pay, off set by the need for kid care. Real estate speculation has given the platform a black eye.

We have an STR, that would have remained a long term rental had it not been for 2 long term tenants in a row refusing to pay the rent. The laws in most areas of the US favor tenants over owners such that the tenant can avoid paying rent for any number of reasons. After several years paying 100% of the maintenance and taxes with only a few hundred dollars of rent payments we shifted the property to an STR. Now we earn enough to cover maintenance and taxes with funds left over to upgrade the property.

I live in Orlando and this practice has destroyed the housing market for the average person or family. Housing prices tripled from 2016 and it has raised taxes and insurance costs which are now ridiculous. This is everyone’s problem because the taxpayer insures the banks that are making these loans which are purchased and securitized by Fannie and Freddie Mac! This is not sustainable and won’t end well. As soon as the law changes and it will everything comes crashing down. Soon!!

What gets me is the endless cleaning fees and or deposits yet one must leave the house spotless 😮

Sold my vacation rentals at the top of the market. It was obvious that it was going to crash because the realtors were selling homes on the basis of the worth of the home as a vacation rental. There were people building 'additional dwelling units' all around me to rent them out to vacationers. This was on the coast of California. The crash is already happening and it is going to be epic.

I live in the Smoky Mountains area of Tennessee, and our Supreme Court has just made it even easier for STRs to be available everywhere in the state. Unfortunately, the local support workers for the 12 million tourists/year have nowhere to live, except at ever increasing long term rental rates.

I admit that one reason I clicked to watch this was the cities in the thumbnail. None were mentioned. +1 for useful content. -100 for clickbait/ misleading.

We are soon to experience the most devastating depression and crash ever recorded in the history of humanity. There is no way this behavior can continue on. Watch and see folks

I used to stay at Airbnbs but have stopped because of bad / subpar experiences and higher costs. It used to be a more practical option but now the silly fees and taxes make hotels a better option for me. The cleaning fee is the biggest joke, countless times I've been charged $200-$400 for a place that was not cleaned thoroughly whatsoever. I truly hope there is a class action lawsuit eventually from the bogus cleaning charge.

How did zoning laws go out the windows for Airbnb ???

The truth is an LLC can buy up residential real estate with less bankruptcy risk than an individual owner who bears a 7 years credit burden. Beware this will probably be legislated against.

Airbnb is just a part of the bad trends in real estate investing. Blackrock and these other firms that bought houses in 2020 + 2021 were a much bigger contributor to the rise in home prices / downturn in affordability.

I've never used AirBnB. I never really understood it. It's as expensive as hotels except you're expected to vacuum or get charged 3x the amount. It's a stupid idea. Hotels or your old school official property rentals all the way

Life in America will continue to get worse for the working class.

Airbnb started in 2007 but the run up in house prices happened right after the Fed printed 40% of all money into existence, in less than a year, nearly doubling the money supply-- in 2020 and 2021

It has already collapsed here. Someone bought my neighbors house for double what he paid for it just a year previous, and they've only rented it one time. The new owners are currently using it as storage for their RV's, boats, and other junk because they can't rent it.

Sarasota is out of control. 2019 & 20, 3br2bt was $280k -$320k, now they are $500-650k!

Live next to an air bnb house and you will understand just how destructive this business is to people’s livelihoods

I'm actually quite surprised. All these airBNBs are commercial ventures.... the land these structures are on is not zoned accordingly. How is it that the municipalities are not requiring these commercial businesses to tear their business building down and build a dwelling consistent with zones requirements for the area???? Easy fix if you ask me.

Why are these landlords treated as individuals and not businesses...... Why are people renting these? I dont get it,.

it's all going according to plan...you will own nothing and be happy

I don't want to live on this planet anymore.

Absolutely correct. An asset bubble must always eventually burst and it’s nearly always due to over-leverage.

😂 Don't worry people because it's ALL coming down...all of it.

They have driven a simple 1500 sq ft, no frills home to UNAFFORDABLE. Absolutely ridiculous sq ft pricing. I hope it pops.

This is very easy to fix. One of the rules the community where I live in Florida has, prohibit the short rentals or AB&B's so anyone with that business intention has to look somewhere else.

AirBnB was indented to rent out a spare room or a corner in the living room. However, greed is always the driver to misuse a system. AirBnB's should only still be single rooms or houses that were specifically build for this and do not take away any living space for the locals. I had a house in Las Vegas next to an AirBnB. It was horrible as there were parties till 6 in the morning in a residential area were people live to work. They need to crack down way harder on this fraud!

I have stayed in condos rented through rental agencies. I have never stayed an AirBnB type rental and never will.

STR has ruined single family neighborhoods by sucking up available real estate that would have been homes for families. The shortage has significantly raised the price of home ownership and should be outlawed. It's more important to provide affordable living space for families than to increase profits for speculaters that already are financially successful.

I’ve never been a fan of Airbnb They remind me of timeshares

I dont understand how banks can't monitor STR websites for mortgages they have lended out as primary homes. Seems to me it's quick and easy to identify fraud. Hold these people accountable! At least have them pay a penalty or something?

As someone who was forced to have lived infront of an Air BnB i can tell you that this is horrid for families. Imagine living in your home and having a house being used as air bnb where you have no clue what is going on next door where one night they could be shooting a video blarring music, at all hours for 4 days, or trafficking, or drug dealers, or just a family taking a vacation. The possibilities are endless.

They helped to inflate home prices to unaffordable unreal prices so I hope to see them all go belly-up

The Villages Florida a retirement community is having problems with these short term rentals not obeying community regulations.

AirBnb and other STRs should be illegal in family oriented neighborhoods. They are a freaking nuissance... I've had people playing football across my yard, pile of garbage left in the street in front of the AirBnb, and one renter drove his car so fast down the road he ran it through and into a house at the end of the street. The biggest problem in this case is the owner is not there to supervise the situation so the renters are not watched over as they are intended to be. AirBnb and other companies do nothing to check to see if the owners are supervising the rentals appropriately. Regardless of that, family neighborhoods are not a place for commercial transactions dealing with an unnatural volume of transient people. We buy houses to be in nice safe neighborhoods where you see and know who should be going and coming, keeping an eye on neighbors property for each other. AirBnb and other STR companies destroy the safety and peacefulness and peace of mind of home ownership and being a good neighbor. The enticing allure of making money with your house is a fish hook that catches many owners, but ethically it is completely wrong on both the AirBnb part and especially on a homeowner that rents there property and is not there to supervise matters. That is analogous to a hotel renting rooms and leaving the keys (or electronically unlocking or delivery of an unlock code) with no supervision on property. That leads to misuse, illegaly activities, and secondary problems like damgage to neigbor's property or peace. It is a no brainer that this should be made illegal.

We used to have a cabin in the north coast of California (2009-2017.) From a pure investment perspective, it would have made more sense to rent it out as a long term rental, but we chose the short term rental option so that we could use the property for ourselves part time. I have a hard time believing the income numbers suggested by Air DNA in the video. It may have been accurate during Covid, but now with hybrid work coming back I would think fewer people are doing short term rentals. For us, the cabin was only rented out during the summer and holidays. The net income was only enough to cover property taxes and utilites.

I don't even own a home but hearing horror stories of bad tenants for long term rentals makes me say F the system. If the law favors bad tenants who can skip out on rent, etc, then ppl will find a way to work around that horrible system. Too bad too sad.

It is greed, greed, nothing but greed !

Everyone wanted to be Grant Cardone 10x ing tf out of everything, real estate being most notable. Vangaurd, Blackstone etc are the real cancers here.

If it wasn't interest rates returning to normal, then it would've been increasingly restrictive home sharing ordinances (HSOs) that would've sunk AirBnB. It was always an incredibly risky business model that depended on the near-0 interest rates that resulted from the last housing collapse. Hopefully governments have learned their lessons this time, and will give no bailouts to any of these companies. Just let investors take the haircut.

Demand is zero. Supply is zero. Even a small increase in supply could crash the market. A recession would skyrocket inventory

Love hotels! 100 a night in Seattle anytime of the year. No cleaning fees. Every neighborhood.

STRs have been around for decades. Airbnb did not invent the concept.

Air BnB is f’in gross.

I’ve never stayed in an Air BNB due to cleanliness concerns. No way do they wash their sheets at the same temperature as the Hilton does.

ABB Officially allow, HIDDEN CAMERAS INSIDE THESE HOMES - to watch your every move. I will never stay at an ABB.

There should be a tip line to turn in the those committing mortgage fraud.

This is nothing new. Folk used to do it all the time during the thirties and forties. If you couldn't afford a house or you were just traveling through some place and you didn't want to be bothered with the hotel, you rented a room in somebody's house.

I just spent over $800 to stay one night in a hotel in Manhattan NYC. It was one tiny room with a small bathroom. These crazy high prices for NYC Hotel tiny rooms help drive the need for Air BnB.

Why hasn't the price of STRs dropped with an over saturation of rooms for rent? How are hotels still charing 120/night for slum shacks? And they still seem to book up in spite of the emergence of online teams meetings which eliminate the need for a large portion of business travel.

Excellent video. I am in the commercial real estate finance business for 16 years. (Anything non owner occupied is commercial real estate, as well as any house with more than 4 units). DSCR loans require 20% down, so investors aren't as likely to walk away from a property like they were in 2008. In addition, if the economy tanks, they can always rent it out long term and get a 5 cap, covering their mortgage. Vacations are discretionary spending, and when people can't afford their living expenses, the first thing that gets cut is things like fast food and travel.

I live in Orlando. Because of STR's Orlando, Kissimmee and Davenport (FL) have become the New Las Vegas. Tourists use to visit here attracted by mostly the themed parks. Spending money on shops, restaurants etc Now all types of low life strange people are coming with welfare and stimulus money to spend 2-4 nights inside an airbnb house with hookers, smoking pot using drugs etc This type of predatory crap tourism brings nothing good for the city. Not only that but because of our irresponsible politicians non-stop printing money , beside our trillions of public debt, dollar worths basically nothing nowadays and thats a mistake that people think house prices, groceries and cars skyrocketed. But it is your money that devaluated to the bottom and beyond folks

STR income should be taxed just like hotel room income.

Why would you rent a place that is lined wall to wall with cameras recording everything you do including watching you shower?

I am a long term (30 plus years) commercial real estate broker, and my wife and I have renovated 12 homes together. I have four kids seeking home ownership. We are seeking a warm weather second home as a precursor to a retirement home. I have specifically been following Sarasota since the New York Times Magazine article of 2 or 3 years ago detailing the presence of the Mid Century Modern architectural style that originated and is prominent there. This report is scholarly and a super good quality explanation of the causes and effects of STR industry on home prices in some markets. Thanks for making us all better informed.

What id like to know is how leveraged the STR market is. Obviously many investors are conservative but you just know some people got in deep. Honestly for the last decade the more debt you took on the better you have done. 27 mortgages are fine- until they aren’t. The industry has done nothing but grow for over a decade. I wonder how many hyper-leveraged host get wrecked once an inevitable recession hits.

I worked for a guy in Sarasota in the 80s. He had built his small concrete block house himself for 16,000. Out of curiosity I looked it up and it is now 400,000 in a neighborhood of similar small (like 800sq foot) houses.

Airbnb's aren't the primary reason for home prices rising. In high-tourist zones, that's certainly true, but not in general. The larger culprit is our banking/monetary FIAT system, and loan incentives, which create rampant speculation. Airbnb owners fuel rampant speculation, but prior to that, our entire banking system does the same thing. Airbnb's certainly don't help, but printing 40% of all the dollars that have ever existed within a four-year period, and artificially suppressed interest rates for years on end...that's the source of it all.

Don't buy it. This is largely prop-a-ganda. The real reason for higher prices is huge companies, like Blackrock, buying up properties using free money from their buds at the Fed, so they can eventually own everything and control rental prices. Unfortunately for them, airbnb gives the little guy an opportunity to have some independent income. Another reason airbnb is more attractive (to mom-n-pop investors) than long term rentals, is that the laws in many states are grossly imbalanced. They coddle delinquent tenants while bankrupting landlords who don't have the clout to influence judges. Of course the laws also favor banks, who get to foreclose on bankrupt landlords, then turn around and sell the properties. An around and around it goes up the spiral staircase to make the (extremely) rich, richer.

Our lone airbnb experience was horror show. We were in update NY in middle of winter and home lost its power in middle of night because of light winds. I experienced what it really means to freeze to the bone. We had a 3 year old with us. Never again.

The Airbnb platform should be taxed 400% to end the entire industry.

Was always curious why some beach and downtown high-end condos never had any lights on at night. Huge buildings with no activity. Cities allow these developments rather than requiring some smaller mid range condos that would serve as actual residences and would contribute to the vibrancy of the neighborhood.

Wrong analysis. Those people are speculating with houses and want to make a fortune with appreciation when they sell. They don't buy houses "because" of Airbnb. They just use airbnb to make some money while the houses are "parked" increasing in value. The main problems are the huge distortions in the American capital markets (negative real interest rates) and an obsession for owning big houses. Houses should not be primarily assets for investment (flipping houses). In the whole world execpt America houses are mostly safe and boring investments for people like retirees who want to get a steady and modest (6% aa) income from long term rent. Also, without Airbnb, apartments in tourist locations used to be empty for 90% of time. They were not sold or rented to families needing a home. Airbnb just reveals deeper issues.

I'm hoping that the Airbnb crash will bring a much-needed adjustment to real estate. Although I enjoy having a property that's worth three times what I bought it for in 2016, I believe that real estate values are artificially inflated and the bubble needs to be burst.

Cleaning fee, maintenance fee, tax, adds up fast; Might as well be in a hotel !

What about zoning laws ? A guy in our neighborhood has a mother in law apartment he rents on B&B. It’s very annoying when guests are coming and going.

Starting to lose faith in a housing dip.

Yeh prices have become ridiculous gone back to hotels, room cleaned everyday restaurants on site and more safety.

Bye Bye Air B & B and it serves every last one of you who rented out your homes, or over leveraged your personal financing's to get into this bubble of rot.

In the UK, AirBnB are now forced to send all the revenue gained from rentals to the Inland Revenue...the Tax Office. It looked like a good, tax free side hustle, but all trasnactions go straight to the tax office. When there is a recession or depression, the only way ANY Govt can get extra cash is by 2 ways. 1. Raise Taxes. 2. Hire more Tax collectors. Whatever happens in Europe will migrate to the other side of the pond. Nothing more criminal than Tax cheats....Govt's hate them.

Great job on this video.

In our Sierra Nevada town, locals can't find rental housing because so many units have been turned into AirBnbs. Personally, I won't stay at an AirBnb -- I can get a better 2 bedroom hotel suite with a kitchen in the center of most cities without have to pay outrageous cleaning fees or worry that my family is being spied on by hidden cameras.

We have probably stayed in our last AirBnB. The cost wasn’t worth the stay, especially since we had to virtually clean the place. Hotels are a better choice for us.

When bubbles burst, even more innocent people get hurt than those actually deserving a skinning. For example: Construction workers that remodeled homes into more attractive STRs. Local banks that will be hesitant to lend to any would-be homeowner. Ordinary homeowners whose homes plunge in value along with the STRs. Homeowners that are foreclosed on because they can't meet the bank's demand for more capital. Even ordinary barkeeps and waitstaff that make less money because STR owners are receiving less income from their STR. The list goes on. This is why "laissez-faire" and "free market" is not always the best policy.

Nightmare hosts with fake reviews finished it for me, i liked being able to stay in these residential areas.

Lately, there has been much focus on STRs as the cause of rising rents and housing cost. But in reality, STRs are really just the scapegoat bogyman for hosing shortages. People flock to STRs because they are in need of immediate, no hassle housing. Whether they are tourists or homeless people, the motive is the same. Eliminating STRs will cause a spike in hotel pricing. What it will not do is have a huge effect a lowering of LT rental cost. That is because STRs are not always repurposed LTRs. They are often (if not mostly) unused vacation homes and spare rooms. They are also new homes which investors built to profit off the housing shortage. Please, somebody please show me the NYC landlord who reduced rents based on the AIRBNB ban.

2 HOUSES ON MY BLOCK WERE BOUGHT TO BE AirBnBs. Both have hosted numerous porn shoots. We chased them out with multiple complaints, one turned to a normal rental, the other is For Sale

Thanks for this. I could see what was happening but the incentive was vague

Ive seen highs and lows on Airbnbs, and in areas where they think they need rates of a Hotel, Id rather stay in a Hotel, come and go as I please. Ive noticed some areas are high as a Hotel and some are low. Berkeley CA was cheap and San Pablo, but NJ was expensive. What was really cheap one time was Hamilton Ontario Canada, because of the Exchange rate on American funds. SO If you just need a place to stay for long term, like without a job, Do Canada, its near the US Border, only like 20 minutes from Border. You might be able to work there, or nearby in Buffalo, NY or Niagara Falls, NY, but it costs about 6 dollars to cross bridge.

On local fb pages I’ve seen a few that are looking to rent to a long term tenant and others liquidating furnishings in multiple properties. I assume getting ready to sell or convert to a normal rental. Greater Tacoma area

The short term rental was a solution to a problem that didn’t exist. We already have plenty of hotels and every other family owns a RV. Plus they make horrible neighbors.

couch surfer was the precursor tbh, and the vibe was completely different and geared for backpackers who needed somewhere to stay. The cultural exchange was worth way more than the $$. I miss those days.

There’s a new bill started in the Florida Senate, SB280. It will literally strip Home Rule away from city governments across the state of Florida. The Marco island residents had put a referendum on the last ballot to have a strict rental registration very similar to Indian Rock Beach. It was past into law according to our city charter. Our council voted to delay implementation to Jan 24. The Florida legislature passed SB250 which our council was told by the city attorney nullified our ballot referendum that just past. Remember that DeSantis is signing these into law. He is in fact helping to destroy neighborhoods. The Florida League of Cities opposing SB 280. Many city mayors and council members have had enough of home rule being stripped away to benefit the lobbyists.