Amid speculation of a mortgage rate-induced real estate pullback, Robert Kyosaki, author of “Rich Dad Poor Dad,” believes an Airbnb (NASDAQ:ABNB) stock pullback may prove to be the spark of a wider housing market crash. Indeed, according to the notorious investor, a major shift is on the way for the entire real estate market in the face of sweeping regulatory changes for Airbnb.
Airbnb has been something of a hot topic recently following New York City’s “de facto ban” on the rental platform earlier this month. The number of short-term listings on Airbnb has sunk in New York, one of the most popular markets for the company.
Kiyosaki believes this is just the beginning of a wider real estate collapse:
“Airbnb to lead real estate 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.”
Analysts Pounce on ABNB Stock
Interestingly, Kiyosaki isn’t the only one doubting ABNB stock’s legs going forward.
Michael Gayed, Fund Manager and Publisher of the Lead-Lag Report, told InvestorPlace in an interview that the return of student loan payments could prove a surprise bearish omen for Airbnb and the real estate industry.
“So you have the student loan repayments. That probably hurts the hospitality side because now there’s less cash flow to go around for traveling. That hurts the Airbnb players, the owners, because now they’re not getting income from their second, third, fourth properties. That might result in some selling of those second, third and fourth properties. And that then maybe sparks a broader inventory unleash in the housing market.”
According to Gayed, Airbnb owners will be the first to feel the pinch of reduced cash flow stemming from the return of student loan payments. If you recall, student loan payments are set to resume this October.
Should that happen, the historically pinched supply of homes in the U.S. may enjoy something of a reversal as Airbnb owners offload their tertiary properties. Many have considered the limited supply of available homes to be the last major barrier to a drop in home prices. If Gayed and Kiyosaki’s predictions come to pass, real estate prices may be in for a long-awaited cold front.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
