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Dive Brief:
- Short-term rental income surged 60% year over year in June across the 11 U.S. rental markets where the FIFA World Cup was hosted, according to an analysis of customer data from Baselane, a banking and bookkeeping platform for real estate investors.
- The largest income jumps were in host cities where short-term rentals are more broadly permitted, with Miami short-term rental income rising 709%; Kansas City, Missouri, rising 607%; and Dallas-Fort Worth rising 587%. Highly regulated short-term rental markets, including Los Angeles, New York/New Jersey and Boston, saw more moderate double-digit jumps.
- The results indicate that major events like the World Cup can create significant short-term rental revenues, “but local market conditions determine how much of that demand they can actually capture,” Baselane CEO Mathias Korder said in a news release.
Dive Insight:
The World Cup sparked a renewed push for short-term rentals from facilitators, with Airbnb offering a $750 incentive to new hosts during the tournament.
As U.S. cities face a housing affordability crisis, however, more are cracking down on short-term rentals, which some studies have shown can lead to increased rent and housing costs.
Houston last year passed an ordinance to begin more closely tracking and regulating short-term rentals to enforce local taxes, and a California state law that took effect in January empowers local governments to do the same.
New York City has one of the country’s most stringent short-term rental laws, banning rentals shorter than 30 days and requiring registration with the city.
