These declining revenues are the result of a slowdown in post-pandemic travel demand to go along with a massive increase in Airbnb supply, trends which are now causing many Airbnb operators to lose money on their rental.

I believe these losses will cause a wave of distressed selling from Airbnb operators in 2023 and 2024, particularly in cities where:

1) revenue has crashed the most, and

2) Airbnb supply increased the most

If you're a homebuyer or real estate investor it's important to understand the exposure your city and neighborhood has to the Airbnb crash, particularly the timing and depth of the downturn. Because when it all shakes out, I believe that there will be some great buying opportunities for homebuyers and investors across the real estate spectrum.

So, without further ado, let's dive into the data.

(Note that when I refer to "Airbnb" in this article, I am referring to the broader short-term rental market, which includes listings found on Airbnb, VRBO, Booking.com, and other travel sites.)

65% more Airbnbs than Homes for Sale in 2023

But before getting into the city-specific data, it's important to understand the broader national trends. Most notably, that the number of Airbnb rentals in America has skyrocketed from less than 200,000 seven years ago to nearly 1 million in 2023 according to data from AllTheRooms.

At the same time, the number of homes Listed For Sale has plummeted, dropping from roughly 1.2 million prior to the pandemic to less than 600,000 today according to data from Realtor.com. The result is that there are currently 65% more homes listed for rent on Airbnb than listed For Sale.