A Viral Tweet Claiming Airbnb Hosts Are Making 50% Less Money In Major Cities Has People Cheering, But It's Not That Simple
Anytime we discuss Airbnb, VRBO, or vacation rental properties in general, people have varying yet visceral reactions. Some dream of one day earning passive income by owning and leasing their own property, while others have called out the industry and hosts for buying up houses during ongoing housing crises.
So it truly came as no surprise when the internet celebrated claims in a viral tweet by Nick Gerli, a real estate app CEO, who shared data seemingly revealing a drastic decline in Airbnb revenue across several major US cities.
The Airbnb collapse is real.Revenues are down nearly 50% in cities like Phoenix and Austin. Watch out for a wave of forced selling from Airbnb owners later this year in the areas hit hardest by the revenue collapse. pic.twitter.com/xjGkj7bFC5
— Nick Gerli (@nickgerli1) June 27, 2023
According to numbers pulled by Nick from vacation rental insight provider All the Rooms, cities like Phoenix and Austin saw a nearly 50% drop in revenue between May 2023 and the previous year. And popular vacation spots were hit as well, with Orlando and Panama City seeing about a 35% decline.
BuzzFeed has reached out to All the Rooms for comment. We'll update you if a representative responds.
This news quickly went viral, drawing in over 35.2 million views — and more often than not, commenters celebrated.
hotel girlies, we may have lost many battles, but we won the war https://t.co/ABcmuTrzJS
— 5hahem aka Dr. Durag (@shaTIRED) June 28, 2023
Some people felt as though Airbnb started off as an opportunity to rent rooms for cheap when in need, but then, as one user put it, "They messed up when they start[ed] charging the same prices as hotels and added in maintenance fees and others fees hotels don't charge for."
Air Bnb’s are dead. I think they messed up when they start charging the same prices as hotels and added in maintenance fees and others fees hotels don’t charge for. You can get free breakfast at hotels too 😂 they should’ve stuck to the basics
— LANDO M.Ed (@LandoSoReal) June 28, 2023
Others say it's no fault of the company itself, but rather hosts who ruined it for everyone. "Airbnb is dying because of greedy hosts," another user tweeted. "Airbnb was a cheaper alternative to hotels. You pay less to have more privacy and freedom. But now Airbnb costs just as much as the hotel. What's the benefit?"
AirBNB is dying because of greedy hosts.AirBNB was a cheaper alternative to hotels. You pay less to have more privacy and freedomBut now Airbnb costs just as much as the hotel. What’s the benefit? You can get room service and free cleaning with a hotel
— Patience...again (@Patiencexx4) June 28, 2023
Owners also chimed in and agreed that their own revenue has dropped. "I can confirm," user @WayneTechSPFX shared. "I had to shut down two of my places in Cleveland. And Cleveland not even in the top 10. I have to close one more in Miami... My partner has to shut down a couple in Miami as well."
Nice catch. I can confirm. I had to shut down 2 of my places in Cleveland. And Cleveland, not even in the top 10.I have to close 1 more in Miami. Miami should def be on that top 10 list. My partner has to shut down a couple in Miami as well.
— WayneTech SPFX®️ (@WayneTechSPFX) June 27, 2023
And from a renter's perspective, residents in areas with many vacation rental homes said, "Local population hates the owners and despises the renters. Locals are cheering for a collapse and pushing for added taxes and regulation on short term rentals even if it means a hit to the local economy."
Personal experience in a small town with an over saturation of AirBnB; local population hates the owners and despises the renters. Locals are cheering for a collapse and pushing for added taxes and regulation on short term rentals (even if it means a hit to the local economy).…
— allegedlyjason.stars (@allegedlyjason) June 28, 2023
When reaching out to Airbnb about the numbers, a spokesperson told BuzzFeed, "The data is not consistent with our own data. As we said during our Q1 earnings, more guests are traveling on Airbnb than ever before, with Nights and Experiences Booked growing 19% in Q1 2023 compared to a year ago."
So while revenue may be down, overall interest from consumers remains nearly the same.
What do you think about vacation rentals? Let us know in the comments.
