(ProsperNews.net) – A severe drop in the availability of Airbnb accommodations is causing a housing crisis in New York City, according to some experts. The number of Airbnb options in the city has fallen by 70% thanks to city officials’ recent introduction of new rules and restrictions. Under the new regulations, Airbnb renters must register with authorities and remain in the home for the duration of the rental period.
The result has seen a significant fall in available properties and a price surge. Out of 4,000 applications by potential renters, only 300 were approved under the new rules. Financial expert Robert Kiyosaki says a housing crash in the Big Apple is now almost inevitable and urged people to cash in.
“If you want a new home, your happy days are around the corner. Same for rental property. The best time to get rich is in a crash,” he tweeted.
This is not the first time experts have warned of an Airbnb-led property crash. In June, economist Jamie Lane debated with Nick Gerli, CEO of Reventure Consulting – a real estate investment advice company – over the extent of the fall in Airbnb revenue. Gerli said revenue was down 50% compared to 2022 in some cities, while Lane said it was closer to 3%.
Gerli, however, insisted that revenues were falling significantly, which would force some owners to sell, causing price crashes that could match the crisis of 2008.
According to analysis company AllTheRooms, around 1 million Airbnb properties are available for rent in the US. Data reveals that in some parts of the country, Airbnb revenue has collapsed, including in Tennessee, where it is down 47.6% since 2022, and San Antonio, which has seen a 43.8% decline. People who bought properties purposefully to rent as Airbnb will now be forced to sell says Nick Gerli.
Some economists argue that the situation will be even worse in New York as new regulations make renting more cumbersome.
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