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Will Airbnb & WeWork become obsolete?
Vail resorts shuts down all it resorts (Breckenridge, Vail, Beaver Creek, Crested Butte, Park City, etc..) Disney World closes, and travel comes to a screeching halt. What happens to the “sharing economy” when people stop sharing? What does this mean for Airbnb and companies like WeWork?
The Real Estate Sharing Economy Background
Here is an interesting statistic by Homeaway: “ Fifty-nine percent of subscribers get at least 75 percent of their mortgage covered by the rental stream.” For almost 60% of people that utilize short term rentals 75% of their mortgage is paid for by the rental income. This paints on ominous picture for thousands of homeowners.
The economic shock to short term rentals has become apparent when many cities literally “turned off the lights” banning all short-term rentals instantly at the peak of the spring break rush throughout the country. This scenario played out in cities like Orlando where Disney shut its parks for the longest time in history and Colorado where all the ski resorts were closed. The owners of the nightly rental properties have gone to zero income (actually negative as they had to refund their bookings) overnight. This trend will likely continue for the next 4 months in many ... more
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