Explore how short-term rentals adding to housing inventory are affecting the market and influencing real estate prices.

According to Airdna, there are nearly 667,000 short-term rentals currently flooding the market. This overwhelming influx of sellers is poised to push the real estate market into what many experts are calling “price crash territory.” It’s estimated that around 29% of Airbnb owners are looking to sell their properties, significantly increasing the inventory for sale in the housing market.

At present, approximately 50% of the listings consist of short-term rentals. Nationally, the housing market is exhibiting clear signs of weakness. The imminent selling pressure from the short-term rental segment as we approach the spring selling season is likely to have a detrimental impact on individual sellers. According to Fred Economic and St. Louis Fed data from April 3, 2025, there are over 800,000 active listings in the U.S. housing inventory. Furthermore, Airdna currently lists more than 2.3 million short-term rentals, and this number is expected to rise in the coming months. As the economy slows, many investors and speculative Airbnb owners are feeling the financial squeeze, which could trigger a collapse in the real estate market. A lack of business acumen and due diligence among some owners is likely to lead to failures, putting banks at risk for these properties. In addition, local neighborhoods may face a cascading effect from declining real estate values, amplifying the crisis and further destabilizing the market.