- The next crash in real estate could be set in motion by Airbnb, according to Robert Kiyosaki.
- The “Rich Dad Poor Dad” guru has sounded the alarm for months of a coming market crash.
- But data shows that the rental market is fairly healthy, with just a small decline in profits.
“Rich Dad Poor Dad” author Robert Kiyosaki is worried that a downturn in the short-term rental market could set the stage for a real estate crash.
The markets guru warned of turbulence ahead for the real estate sector in a recent post on X, formerly known as Twitter.
“AIR B&B to lead real market crash. 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,” Kiyosaki said.
Airbnb, the online rental platform, recently saw the number of short-term units plunge by 70% in New York City after a new law was passed that requires Airbnb owners to register with the city if they plan to rent their homes out for less than 30 days.
In a comment to Insider, a spokesperson for Airbnb said: “NYC is an outlier in its approach to short-term rental regulations – the majority of US cities already have short-term rental rules in place, but none have taken the onerous approach that NYC has on this topic.”
“As of 2022, no one city accounts for more than 1.5% of Airbnb revenue, and as illustrated by Q2 financial results, Airbnb is stronger and more profitable than ever,” the spokesperson added.
Kiyosaki’s post this week echoes fears of an “Airbnbust,” a crisis where Airbnb owners could be pushed to sell their properties because of either lower profits in the short-term rental market or because of tighter regulation in major cities that are cracking down. Some observers have argued that a wave of selling by Airbnb owners could spark a 2008 style home-price correction.
A viral X post in June claimed that Airbnb rental profits have collapsed over 40% in major metropolitan cities. But that was later debunked in a study using a larger data set from the analytics firm AirDNA, which found that the average revenue per available rental has actually declined just 3.6% over the past year.
The rental market outside of platforms like Airbnb also appears to be relatively buoyant. Rents came close to notching another all-time-high last month, Redfin data shows, thanks to tight competition amid limited supply.
Kiyosaki, for what it’s worth, is known for his bombastic tweets and has regularly sounded the alarm for a coming market crash. He has also repeatedly urged his followers to buy up real estate and other assets like silver and bitcoin to hedge against inflation, which he believes is “systemic.”
Editor’s note: This story has been updated to include a comment from Airbnb responding to the decline in short-term rental listings in New York City.