Airbnb Empowers Renters to Earn 💰

Today’s top stories…

• Airbnb's initiative to help renters earn extra income

• The surprising impact of virtue signaling on Airbnb listings

• Jamie Dimon's dire warning about stagflation and its potential impact on real estate

• 💰 Deal of the Day!: 5 bd | 6 ba | Johnson City, TX

Today’s mortgage rate (30 Yr. Fixed): 7.44%

Airbnb Throws Renters a Lifeline

Airbnb just announced an initiative that could help renters earn extra income and stay in their homes amidst skyrocketing rental rates.

Here's the scoop:

• Airbnb plans to work with city and state governments to advocate for short-term rental rules that allow renters to share their homes.

• Over 40% of U.S. homeowners who rent on Airbnb use the extra money just to stay in their homes, with 10% saying it helped them avoid eviction or foreclosure.

• In 2022, a record 22.4 million renter households were cost-burdened, spending more than 30% of their income on rent and utilities.

• Those with the lowest incomes spent 39% less on food and 42% less on healthcare than their "unburdened counterparts."

But here's the kicker: many early laws limited short-term rentals to homeownership. However, cities like Raleigh, San Diego, and Tulsa have recently passed "renter-friendly" policies. Virginia even signed a law requiring localities to issue short-term rental permits to tenants with property owner permission.

As Airbnb's North America policy director, Mike Signer, put it: "Homeownership should not be a barrier to entry when it comes to sharing your home."

(source)

Do you think this is a good idea?

The Virtue Signaling Sweet Spot

A recent study analyzed over 80,000 Airbnb listings to determine how hosts' communication of personal values impacts their bottom line. The findings might surprise you!

• Hosts who use a modest amount of virtue language in their listings earn an average of $1,098 more per year than the average host.

• However, excessive virtue signaling can backfire, resulting in a loss of more than $4,964 annually.

• The effect is even more pronounced for Airbnb Superhosts, who experience stronger reactions from consumers when it comes to virtue language.

• Political context matters: hosts in conservative-leaning counties face more intense consumer responses to virtue signaling.

So, what's the sweet spot? The study suggests that a little bit of virtue language comes across as trustworthy, while too much can be perceived as dishonest. It's all about finding the right balance and considering your target audience.

As an investor, this information can help you craft more effective listing descriptions and navigate the delicate art of communicating values. Remember, a sprinkle of virtue goes a long way in the sharing economy!

(source)

Jamie Dimon's Stagflation Nightmare

Real estate investors, brace yourselves! JPMorgan Chase CEO Jamie Dimon just dropped a bombshell in the company's first quarter earnings call, and it's not pretty. While most economists have abandoned their recession calls this year, Dimon warns that a "moderate recession" is still a possibility. But that's not even the worst-case scenario.

According to Dimon, stagflation - that toxic combination of low growth and high inflation - could be on the horizon, and it would hit the real estate industry hard:

• If interest rates continue to rise due to persistent inflation, every asset could be devalued by 20% from a two-percentage-point increase in the 10-year Treasury rate.

• Stagflation would lead to more vacancies, companies cutting back, and fewer leases, affecting everything from office space to multifamily properties.

• The impact would "filter through the whole economy in a way that people haven't really experienced since 2010."

• While Dimon acknowledges that not every real estate company or lender is in a bad position, and factors like region and building quality play a role, the overall picture is grim if stagflation takes hold.

(source)

💰 Deal of the Day!

Price: $1,349,000

Address: 1137 Loop 163, Johnson City, TX 78606

The Saoirse Learning Center offers a unique and sustainable vacation rental experience, featuring a variety of accommodations, including the popular Dome home and Hempcrete buildings, situated on a 10-acre property with over 50 pecan trees, a community workshop, dog park, walking trails, and a community garden, all just a few blocks from the historic downtown Blanco and the Blanco River.

Airdna data:

Estimated monthly payment: $8,950/month (if financed)

Estimated monthly revenue: $9,108/month

Cashflow excludes additional operating expenses. Always confirm local regulations, HOAs and permits before purchasing a property.

Thanks and see you tomorrow!

✍️ Brett