BUSINESS + ECONOMY

Is Airbnb heading for a crash? Some experts say no

Jul 6, 2023, 8:30 PM | Updated: Jul 18, 2023, 12:02 pm

Is Airbnb heading for a crash?...

The front room in Heidi Jaeger's Park City home, which she often rents as an Airbnb, is seen on Friday, May 5, 2017. Is Airbnb heading for a crash that will cause thousands of homes to go back onto the market? Utah experts say no. (Jeffrey D. Allred/Deseret News)

(Jeffrey D. Allred/Deseret News)

SALT LAKE CITY — Is Airbnb heading for a crash that will cause thousands of homes to go back onto the market? Utah experts say no.

Revenue for Airbnb across the country is dropping off dramatically. This is happening in some cities more than others, according to data from a popular economist on YouTube.

But Senior Research Fellow at the Gardner Policy Institute Dejan Eskic says this doesn’t necessarily mean Utah is heading toward an Airbnb crash.

“The market is oversaturated, especially in certain geographies like Phoenix,” Eskic says.

However, he thinks it would be impossible for all those homes to hit the market at the exact same time leading to a crash.

“If all of those Airbnbs came online today and hit the market in Salt Lake County,” he says. “You know, it’s like a month or two worth of inventory. So, it wouldn’t make a dramatic impact.”

Eskic says this would be a little bit different in Summit County, where 50% of houses are now short-term rentals.

Devin Oldroyd contributed to this story.

Read more: Utah lawmakers looking to crack down on Airbnb tax cheats

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Is Airbnb heading for a crash? Some experts say no