Robert Kiyosaki, the acclaimed author of “Rich Dad Poor Dad,” has recently voiced apprehensions about a potential downturn in the short-term rental market and its potential to trigger a real estate crisis. This warning was conveyed through a post on X, formerly known as Twitter, where Kiyosaki expressed concerns about turbulence in the real estate sector.
Kiyosaki’s Warning and Projections
According to Kiyosaki, the popular online rental platform, Airbnb, could be a significant factor leading to a real market crash. He advised that those seeking new homes or interested in rental property might soon witness favorable circumstances. Kiyosaki believes that the best time to accumulate wealth is during a market crash.
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Airbnb recently faced a substantial setback when the number of short-term rental units plummeted by 70% in New York City. This decline was a direct result of a new law mandating Airbnb owners to register their properties with the city if they intend to rent them out for less than 30 days.
Airbnb’s Response and Market Reactions
In response to the drastic reduction in short-term units in NYC, an Airbnb spokesperson informed Insider that NYC’s approach to short-term rental regulations is quite unique. Most US cities already have regulations in place for short-term rentals, but NYC has taken an exceptionally strict stance on this matter.
Kiyosaki’s recent warnings about an “Airbnbust” reflect concerns that Airbnb owners might be compelled to sell their properties due to diminishing profits in the short-term rental market or due to tightening regulations in major cities. Some industry observers speculate that a wave of selling by Airbnb owners could potentially trigger a home-price correction akin to the one witnessed in 2008.
Analyzing the Claims and Reality
Contrary to claims made in a viral X post, a comprehensive study by analytics firm AirDNA debunked the notion that Airbnb rental profits have collapsed by over 40% in major metropolitan cities. The study, based on a substantial dataset, revealed that the average revenue per available rental has actually seen a modest decline of just 3.6% over the past year.
It’s important to note that the rental market beyond platforms like Airbnb appears to be relatively stable. Recent data from Redfin suggests that rents approached an all-time high last month due to fierce competition in the face of limited supply.
Kiyosaki’s Perspective and Previous Alarms
Robert Kiyosaki is known for his provocative tweets and consistent warnings about an imminent market crash. He has consistently advised his followers to invest in real estate and other assets like silver and bitcoin as a hedge against what he perceives as “systemic” inflation.
In conclusion, while Kiyosaki’s concerns about a potential real estate crisis triggered by the short-term rental market are plausible, it’s essential to analyze the market comprehensively and consider multiple factors that contribute to its dynamics. As the real estate landscape continues to evolve, vigilance and informed decisions will be crucial for investors and property owners alike.
