While the US economy is presently firing on all cylinders, there are fears of a potential market slowdown coming in the future. Experts are beginning to fear that 2020 might be the start of a recession. During these times, consumer spending slows down, property prices decline, and expenses, in general, deflate. The consumer, which powers much of the US economy, has less disposable income and, as such, tends to spend less on frivolous things.
A slowdown in the market would have a ripple effect on the Airbnb market, but it wouldn’t be quite like you might expect. Here are three changes that would happen to Airbnb rentals if the market were to slow.
Airbnb Has An Uber-Like Effect: Rentals Might Increase In A Slowdown
Uber has an “inverse” economic trajectory. When the economy is bad, more people are looking to drive, and passengers are looking to save money. One way to save money is by taking an Uber as opposed to paying for the expense of a car. Therefore, when the economy is terrible, Uber can see an increase in business.