Airbnb Crowds Out First Time Home Buyers And Renters

Home ownership is increasingly elusive. Whether it be the higher credit score needed or increased down payment or income to expense ratios that are in stone. But before all those hurdles the biggest hurdle of all is the melt up of home prices facilitated by easy money Fed policies. Easy for whom? Hedge funds with access to credit markets are now more than ever before to be the cash buyer of homes. They in turn either flip it or rent it. No way is the money manager going to move in.Now comes Airbnb. Similar to a geeky chimera of Genghis Kahn it changes the calculus of home ownership for an individual and puts home ownership out for bidding against the prospect of renting a home out to OUT OF TOWNERS. For example San Francisco real estate already exalted receives another bubble boost of effectively promising an extra income possibility. Under the new math possibility a typical one bedroom can be rented for $200 per night-roughly $6000 per month income.But the mortgage and expenses add up to only $3000-4000 per month.Looks like a good deal to the new class of Airbnb inspired who are similar to a somewhat humane Great Kahn's roving horde. These newly rich buyers who wouldn't think of living in a one bedroom now salute Airbnb. Genghis Kahn had his mandarins albeit on horseback. Do you think that G.K.'s pals could preemptively deal themselves in on Kahn's droppings at the feasting table and scope possibilities and position themselves appropriately? But where does that money come from? There so much money in circulation that finding places to store it can be a problem.