A: Happy Thanksgiving 2022 to everyone in my real estate insider family! Here are 3 recent real estate trends I am thankful for this Thanksgiving: lower inflation Higher housing inventory home prices flattening and housing becoming more affordable
continue reading Q: Why did home prices go up so fast during the pandemic? Sam, Westfield, NJ A: There are several reasons home prices went up so fast during the pandemic, but one overlooked reason is the “investor mania” that was unleashed by speculative home buyers and investors. Many amateur real estate investors and buyers poured into local housing markets during the pandemic in hopes of building Airbnb and VRBO empires. In addition, Institutional investors ramped up their algorithm-driven home buying and rapidly expanded their residential real estate portfolios during Covid. All this increased demand for residential homes drove home prices higher than otherwise probably would have been. Thanks for your question, Sam. For more real estate tips and information visit […]
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Meta, Airbnb shed office space as they adjust to pandemic-related changes.
continue reading Q: I’m looking to buy a rental property. At the prices I’m seeing for properties, the rents won’t come close to covering my mortgage and costs. My cousin gets a lot of money for his place when he rents it on airbnb. I feel more comfortable now knowing that. Do you think airbnb is the way to go? Tim, West Orange, NJ A: For 6 hours on Oct 4th 2021 Facebook went down for 6 hours. There are many businesses who are dependent on Facebook who lost revenue during that outage. Likewise, in recent years there are many investors (often newbie investors) who overpaid for rental property hoping to cover their expenses and debt service by renting out a home […]
continue reading New Jersey’s surcharge on short-term rentals, ‘the Airbnb tax’ is causing vacationers to rethink their summer travels and stirring anxiety among some Jersey Shore homeowners.
continue reading Q: Do you think Airbnb contributes to housing shortages in big cities? Nancy, Nashville, TN A: I like and use Airbnb when I travel because I prefer staying in a real place rather than a hotel whenever possible. That said, there is no question that Airbnb and other short term rental platforms distort local real estate markets where they operate because supply and demand are the two most important factors that affect real estate prices and Airbnb affects both supply and demand. The commercial use of Airbnb has more of a corrosive effect on real estate markets than individual owners trying to make extra money renting out their place which has enabled speculators to buy real estate for the sole […]
continue reading 1,300 rental units in Downtown Jersey City are rented out through services like Airbnb which represents 7% of all Downtown rental units.
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Gross rent tends to be much higher when you rent property short term (i.e. by the day on Airbnb). However, your net income may not be higher because short-term rentals often have higher expenses for advertising and cleaning.
continue reading Q: Gerald, I use airbnb for lodging when I travel sometimes. The tenant in my rental property is moving out soon–does it makes sense to convert my rental property into an airbnb property? Kendra, Roxbury, MA A: Great question, Kendra. Does it make sense to convert a traditional rental property into an airbnb property? I’m familiar with airbnb because I use airbnb a lot when I travel because I prefer to stay somewhere that is more like home rather than a hotel room. There are investors now that actually look for investment properties to buy specifically to offer on airbnb, VRBO, homeaway or other real estate app platforms. The main issue you have to recognize if you switch from a […]
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