Hello @Chris731,
That's not the way that it should happen. If the host has a problem they must cancel the reservation.
If you cancel you may, depending on the listing's cancellation policy, loose money and you will probably not get the fee that Airbnb charged you back anyway.
It's the host's problem. They will not want to cancel because they'll be penalised if they do, but you must insist that they do. If they refuse to cancel, contact Airbnb support.
I'm a host. What penalties apply if I need to cancel a reservation?
Log in and click on "Help" and then type "contact airbnb" in the "Ask a question ..." box. Then click on the "I want to contact Airbnb" link.
Then click on the "Contact page" link near the end of the page.
You can also type "contact airbnb" in the "Search the community" box on these forum pages where you posted your question. Scroll down a little in the list of suggestions that appears and click on the "Contact Airbnb: A Community Help Guide[UPDATED]" one. That lists phone numbers and ways to contact them via Twitter or Facebook.