Airbnb bookings have declined over the past year in cities like Austin and San Francisco that have historically been popular destinations for short-term rentals, prompting concern over the economic uncertainty wracking urban areas and the prospect of a “doom loop” developing.
Nick Gerli, the CEO of Austin-based Reventure Consulting, recently tweeted that the “Airbnb collapse is real” and that, “Revenues are down nearly 50 percent in cities like Phoenix and Austin.”
He went on to say, “Watch out for a wave of forced selling from Airbnb owners later this year in the areas hardest hit by the revenue collapse.”
Gerli cited AllTheRooms data which showed a 48.6% year-over-year decline in the average revenue per available listing in the three-month period ending in May for the Austin metropolitan area.
He attributed the decline to the end of pandemic-era migration, tweeting: “The pandemic is over. Fewer people are working from home / vacationing in states like Montana, Texas, and Tennessee. So the demand is way down. Just as the Airbnb supply went way up. So you get a crash.”
An Airbnb spokesperson told FOX Business, “The data is not consistent with our own data. As we said during our Q1 earnings, more guests are traveling on Airbnb than ever before, with Nights and Experiences Booked growing 19% in Q1 2023 compared to a year ago.”
Jamie Lane, the chief economist and SVP of analytics at AirDNA, also pushed back on the notion of a major decline in short-term rentals.
Lane tweeted an analysis using AirDNA data of the same metro areas covered in Gerlis analysis which found an average decline of 3.6% rather than 40%.
The AirDNA data showed the Austin metro area experienced a 7.2% year-over-year decline in revenue per available listing for the same three-month period ending May 2023.
The San Francisco Standard reported that data from AirDNA found that nights stayed in vacation rentals in San Francisco were down 29% in May 2023 compared to May 2019.
The outlet also spoke to several Bay Area homeowners who rent out rooms through Airbnb, including host Keith Freedman, who estimated that prices for San Francisco Airbnbs are down about 40% from last year and occupancy has declined 20% to 25%.
Separately, Gerli tweeted data showing that median rents in the Austin metro area declined 6% year-over-year while the San Francisco metro area experienced a 4% decline, which he said could also contribute to owners being forced to sell in the second half of this year.
Some of the decline in rents could be attributed to slowing population growth in those metro areas.
While the Austin area has seen rapid growth over the past decade, particularly in the suburbs outside the city limits, the Census Bureau estimates that Austins population grew 1.3% from April 2020 to July 2022.
Unlike Austin, San Francisco’s population growth has been on a downward trend in recent years.
The Census Bureau estimates that San Francisco Countys population declined by 7.5% from April 1, 2020, to July 1, 2022.
Slowing population growth or overall declines in a citys population raises the prospect of an “urban doom loop” developing.
An urban doom loop involves a decline in workers in offices in city centers, which results in businesses shrinking their office footprint and their rental overhead.
The decline in demand causes real estate prices to fall, which in turn reduces property tax revenue while other sources of tax revenue, like sales tax, also take a hit due to the reduced traffic in downtown areas.
As the overall tax base declines, it becomes harder for city governments to fund services like law enforcement, which can lead to a rise in crime that makes downtown areas less desirable, worsening the “doom loop.”
CHARLOTTE, N.C. — A federal judge on Thursday rejected a request from 23XI Racing and Front Row Motorsports to continue racing with charters while they battle NASCAR in court, with the teams saying it puts them at risk of going out of business.
The ruling means the teams’ six cars will race as open entries this weekend at Dover, next week at Indianapolis and perhaps longer than that.
U.S. District Judge Kenneth Bell denied the teams’ bid for a temporary restraining order, saying they will make races over the next couple of weeks and they won’t lose their drivers or sponsors before his decision on a preliminary injunction.
Bell left open the possibility of reconsidering his decision if things change over the next two weeks.
After this weekend, the cars affected may need to qualify on speed if 41 entries are listed — a possibility now that starting spots have opened.
23XI, which is co-owned by retired NBA great Michael Jordan, and FRM filed their federal suit against NASCAR last year after they were the only two organizations out of 15 to reject NASCAR’s extension offer on charters.
The case has a Dec. 1 trial date, but the two teams are fighting to be recognized as chartered for the current season, which has 16 races left. A charter guarantees one of the 40 spots in the field each week, but also a base amount of money paid out each week.
Jordan and FRM owner Bob Jenkins won an injunction to recognize 23XI and FRM as chartered for the season, but the ruling was overturned on appeal earlier this month, sending the case back to Bell.
Three-time Daytona 500 winner Denny Hamlin co-owns 23XI with Jordan and said they were prepared to send Tyler Reddick, Bubba Wallace and Riley Herbst to the track each week as open teams. They sought the restraining order Monday, claiming that through discovery they learned NASCAR planned to immediately begin the process of selling the six charters which would put “plaintiffs in irreparable jeopardy of never getting their charters back and going out of business.”
“This is a fair and significant fear; however, NASCAR has agreed that it ‘will not sell any charters before the court can rule on plaintiffs’ motion for preliminary injunction,'” Ball wrote. “Similarly, plaintiffs worry that denying them guaranteed entry into the field for upcoming races could adversely impact their competitive standing, including their ability to earn a spot in the playoffs. Again, a legitimate, potentially irreparable harm. Yet, akin to the sale of charters, NASCAR represents to the court that all of plaintiffs’ cars will qualify (if they choose to race) for the races in Dover and Indianapolis that will take place during the next 14 days.”
Making the field won’t be an issue this weekend at Dover as fewer than the maximum 40 cars are entered. But should 41 cars show up anywhere this season, someone slow will be sent home and that means lost revenue and a lost chance to win points in the standings.
Reddick was last year’s regular season champion and raced for the Cup Series championship in the season finale. But none of the six drivers affected by the court ruling are locked into this year’s playoffs.
One child has died after a coach bringing children back from a school trip crashed and overturned near Minehead, Somerset, police have said.
A major incident was declared after the vehicle, which had 60-70 people on board, crashed on the A396 Cutcombe Hill, between Wheddon Cross and Timbercombe, shortly before 3pm on Thursday afternoon.
The coach was heading to Minehead Middle School at the time.
At a news conference on Thursday night, officials confirmed one child died at the scene.
A further 21 patients were taken to hospital, including two children who were transported via air ambulance. “Several” other people were treated at the scene, they added.
Image: A police officer near the scene of the coach crash in Somerset. Pic: PA
“This has been an incredibly challenging scene for all emergency services,” Chief Superintendent Mark Edgington said.
“Today’s events are truly tragic, we know the whole community and wider area will be utterly devastated to learn of this news.”
An investigation into what caused the crash will be carried out, he added.
Gavin Ellis, the chief fire officer for Devon and SomersetFire & Rescue Service, said the coach “overturned onto its roof and slid approximately 20ft down an embankment”.
He praised an off-duty firefighter who was travelling behind the vehicle for helping at the scene, before crews then arrived to carry out rescues “in extremely difficult circumstances”.
“I’m grateful for the tireless effort and actions of the crews in doing everything they could for those who were trapped and as quickly as safely as possible,” he said.
“I’m extremely proud of the efforts that my firefighters took today at this tragic event.”
Eight fire engines were sent to the scene, with two specialist rescue appliances and around 60 fire personnel, Mr Ellis said.
A total of 20 double-crewed ambulances, three air ambulances and two hazardous area response teams were also sent to the scene, a representative for the South Western Ambulance Service said.
Image: Pic: PA
Ch Supt Mark Edgington said: “Many passengers either sustained minor injuries or were physically unharmed and were transferred to a rest centre.
“Work to help them return to Minehead has been taking place throughout the evening.
“An investigation into the cause of this incident will be carried out.”
Minehead Middle School has pupils aged between nine and 14, and is five days away from the end of term.
‘I don’t have words,’ says local MP
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‘From one mother to another, I feel your pain’
Rachel Gilmour, MP for Tiverton and Minehead, has said the road where the coach crashed is “very difficult to manoeuvre”.
Speaking to Sky News chief presenter Anna Botting, Ms Gilmour said she visited Minehead Middle School recently, where she “met the children and they were full of joy, enthusiasm and were very positive”.
“I know many of their parents,” she said. “I don’t have words.”
Describing the scene, Gilmour continued: “You have a very difficult crossing at Wheddon Cross, and as you come out to dip down into Timbercombe, the road is really windy and there are very steep dips on either side.
“If the coach, as the police are saying, went 20ft off the road, you are literally on a really, really steep bank.”
The MP, whose constituency is partly in Devon and partly in Somerset, said there is a “really, really close community”.
“We will pull together, but it would be crass of me to say to a parent who’s just lost their child that I could make things better, I can’t,” she said.
“All I can say is that from one mother to another, I feel your pain.”
Image: Cutcombe Hill near Minehead, where the accident took place. Pic: Google Maps
Sir Keir Starmer said in a post on X: “There are no adequate words to acknowledge the death of a child. All my thoughts are with their parents, family and friends, and all those affected.
“Thank you to the emergency workers who are responding at pace – I’m being kept up to date on this situation.”
Education Secretary Bridget Phillipson wrote: “It is heartbreaking to hear that a child has died and others are seriously injured following the incident in Minehead earlier today.
“My thoughts are with their friends and families, and all those affected by this tragic event.”
Elon Musk’s health tech company Neuralink labeled itself a “small disadvantaged business” in a federal filing with the U.S. Small Business Administration, shortly before a financing round valued the company at $9 billion.
Neuralink is developing a brain-computer interface (BCI) system, with an initial aim to help people with severe paralysis regain some independence. BCI technology broadly can translate a person’s brain signals into commands that allow them to manipulate external technologies just by thinking.
Neuralink’s filing, dated April 24, would have reached the SBA at a time when Musk was leading the Trump administration’s Department of Government Efficiency. At DOGE, Musk worked to slash the size of federal agencies.
MuskWatch first reported on the details Neuralink’s April filing.
According to the SBA’s website, a designation of SDB means a company is at least 51% owned and controlled by one or more “disadvantaged” persons who must be “socially disadvantaged and economically disadvantaged.” An SDB designation can also help a business “gain preferential access to federal procurement opportunities,” the SBA website says.
Musk, the world’s wealthiest person, is CEO of Tesla and SpaceX, in addition to his other businesses like artificial intelligence startup xAI and tunneling venture The Boring Company. In 2022, Musk led the $44 billion purchase of Twitter, which he later named X before merging it with xAI.
Jared Birchall, a Neuralink executive, was listed as the contact person on the filing from April. Birchall, who also manages Musk’s money as head of his family office, didn’t immediately respond to a request for comment.
Neuralink, which incorporated in Nevada, closed a $650 million funding round in early June at a $9 billion valuation. ARK Invest, Peter Thiel’s Founders Fund, Sequoia Capital and Thrive Capital were among the investors. Neuralink said the fresh capital would help the company bring its technology to more patients and develop new devices that “deepen the connection between biological and artificial intelligence.”
Under Musk’s leadership at DOGE, the initiative took aim at government agencies that emphasized diversity, equity and inclusion (DEI). In February, for example, DOGE and Musk boasted of nixing hundreds of millions of dollars worth of funding for the Department of Education that would have gone towards DEI-related training grants.