As the FIFA World Cup draws to a close with Spain and Argentina poised to claim the championship, a less conspicuous winner has emerged from the month-long tournament: short-term rental hosts. Over the course of the 39-day event, tens of thousands of Americans entered the short-term rental market for the first time, listing their homes on platforms like Airbnb and Vrbo.
Data from the group stage in June shows a notable 12 percent increase in short-term rental availability in host cities compared to the same period last year. This surge provided travelers with more lodging options, often at prices below those demanded by hotels. As a result, hotels in some locations saw occupancy rates decline from previous years, while visitors benefited from alternatives that helped mitigate the typical price surges associated with major sporting events.
For property owners, the tournament presented a lucrative opportunity. Airbnb, for example, offered $750 bonuses to hosts living near stadiums who listed their homes during the event, incentivizing local residents to capitalize on the influx of global visitors.
The increased availability of short-term rentals during the World Cup highlights a broader economic point: expanding lodging supply can alleviate high hotel prices more effectively than measures such as increased taxation or accusations of industry greed. When markets operate with fewer restrictions, they often provide more affordable options.
However, many U.S. cities maintain stringent regulations that limit the ability of property owners to participate in the short-term rental market. New York City, one of the tournament's pivotal hubs, requires hosts to register listings with the government and obtain verification numbers. Rentals of less than 30 days mandate that the owner be present throughout the guest's stay. City officials did not relax these rules during the World Cup, diverting demand—and potential income—to nearby New Jersey hosts who faced fewer restrictions.
Other major metropolitan areas including Washington, D.C., Los Angeles, and Chicago impose similar constraints, often restricting short-term rentals to primary residences. In Las Vegas, hosts must secure a license and pay annual fees to legally rent out properties. These regulations are frequently supported by hotel industry groups and labor unions, who argue that short-term rentals exacerbate housing affordability issues.
Critics of short-term rental restrictions point to data showing that whole-home short-term rentals represent just 1.2 percent of the overall housing supply. Experts contend that the primary causes of rising housing costs are local zoning policies and land-use restrictions rather than the presence of short-term rental units.
Looking ahead, cities preparing for major international events face questions about how to regulate short-term rentals to balance economic benefits and housing concerns. Los Angeles, set to host the 2028 Olympic Games, will be closely watched to see whether it permits greater flexibility for residents to profit from the anticipated influx of tourists.