Airbnb gains World Cup demand in U.S. host cities as hotel occupancy falls short

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Airbnb gains World Cup demand

Highlights

Short-term rental supply in U.S. World Cup host cities rises 12 percent year-over-year to over 52,000 new listings, driven by Airbnb incentives and tournament demand.
Average short-term rental prices in Kansas City jump 63 percent versus last June despite nearly doubling supply, signaling platforms are lifting both revenues and inventory absorption.
Hotel occupancy in host cities slightly declines during the tournament's first 17 days despite a 20 percent rise in average room rates, and New York hotels' net revenue forecast drops to $160 million from $300 million.

World Cup rental surge reshapes lodging demand

As reported by Financial Times, more than 52,000 additional short-term rentals are listed in U.S. host cities during the group stage compared with June last year, a 12 percent increase, based on data from analytics company AirDNA. The jump follows a marketing push by Airbnb and other platforms aimed at bringing first-time hosts into the market during the tournament.

Airbnb encourages homeowners to join by offering $750 bonuses for properties near major stadiums if they host their first guest before the end of July. In Atlanta, Laura Hawkins says the incentive is enough to justify spending $500 to prepare her apartment for listing after a longtime tenant leaves in April.

Existing hosts are also seeing higher returns during the event. Dallas-based Jennifer Smith, who has hosted on Airbnb for about 18 months, says one of her properties generates 78 percent more income during the World Cup than in the same period in 2025, which she attributes to Airbnb's automated dynamic pricing tools.

AirDNA data show average short-term rental prices in Kansas City, which hosts six matches, rise 63 percent from last June even as supply almost doubles. That suggests platforms are managing to absorb new inventory while still lifting host revenues in key match locations.

Hotel pricing rises but occupancy lags expectations

Hotel operators in U.S. host cities post a slight decline in occupancy over the first 17 days of the tournament even as room prices increase, according to figures from hospitality data company CoStar. Aran Ryan, director of industry studies at Tourism Economics, says hotels raise room rates by an average of 20 percent relative to June last year, but overall performance is still trailing expectations as more budget-conscious fans choose short-term rentals.

Analysts say the event still benefits hotels, but more through pricing than full rooms. Richard Clarke of Bernstein says luxury properties in prime locations are seeing the strongest gains as they accommodate delegations with large budgets, while some operators may also be prioritising higher rates over occupancy to support long-term pricing and staffing efficiency.

Not all hotel markets are meeting earlier forecasts. Vijay Dandapani, president of the Hotel Association of New York City, says the group now expects a net revenue gain of about $160 million for New York hotels during the World Cup, roughly half the $300 million forecast made at the start of the year using projections from tournament organiser Fifa.

Dandapani says unusually high ticket prices and transport costs are prompting some fans to cut accommodation spending or skip attending altogether. For Airbnb, the next test is whether new hosts remain on the platform after the tournament, with AirDNA economist Bram Gallagher saying the overwhelming majority of new listings are advertising availability beyond match dates, and chief financial officer Ellie Mertz pointing to Paris, where more than half of Olympics-related listings remained active six months after the 2024 Games.

Our earlier coverage of the 21st Century ROAD to Housing Act explained how the new bipartisan law targets America’s housing shortage by removing barriers to construction while emphasizing taxpayer protection and local control. We also noted that easing supply constraints is central to improving long-term housing stability and affordability for U.S. families—an issue that shapes how quickly markets can respond when demand spikes.

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