The future of Airbnb after the covid-19 pandemic

What would happen to Airbnb after the virus crisis end? It’s another intriguing question for many people who are a part of this home-sharing economy. One thing for sure is many properties are empty since mid-March and it’s likely to continue for at least another 2 months.

The fundamental issue for many hosts is they use financial leverage to own properties and rent them out with Airbnb. They have to find ways to cover their mortgage with no to little income for at least 6 months. Many hosts opted to find long term rents. However, as everyone rush to do the same, the competition is fierce which would cause the rental rate to drop.

I believe Airbnb will be around after the crisis. The number of hosts would drop but not much. The host with high leverage will suffer the most. And, they will be the first group that drop out. Airbnb will come up with new services around something sharing.

And lives will move on.

Apivut

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