World Cup Accommodation Frenzy Pushes Airbnb Rates Above $6,000 Per Night

(SeaPRwire) –   Those who can rent out their properties, particularly in the tri-state area, are set to be the biggest beneficiaries of this year’s World Cup.

Bobby Roufaeal, who oversees more than a dozen short-term rentals in New Jersey, noted that a luxury rental in the state could generate $240,000 between June 11 and July 19, the duration of the tournament. He mentioned he is tripling the rates for his units in expectation of an influx of fans for the matches and receiving calls from homeowners eager to profit from the demand.

“They’re saying, look, I’ll work it out. I’ll go stay with family for the month or a few weeks just to take advantage of this income,” said Roufaeal, founder of Settled In Property Management.

Listings already indicate a spike in prices. A six-bedroom Airbnb Inc. property in Princeton, New Jersey, is being offered at approximately $6,000 per night during the World Cup, around 140% higher than its rate from a year ago. This is even though it is over an hour’s drive from the matches taking place at MetLife Stadium.

This enthusiasm is transforming the accommodation market in World Cup cities across the US, which anticipate millions of visitors over the tournament period. Matches are also being held in Mexico and Canada.

For those renting out their homes, it can be a profitable opportunity — particularly since Airbnb has offered up to $750 in cash to encourage first-time hosts to list their properties. For travelers, the cost of attending is mounting as prices for tickets, hotel rooms, and flights rise. The New York Times has reported that the tourism boom is projected to increase hotel rates in host cities by an average of 300% around the opening matches.

These costs are prompting Mehdi Salem, founder of the French soccer fan association Les Baroudeurs du Sport, to seek cost-saving measures while arranging accommodations for 80 of his members to watch France play at MetLife.

He is fitting eight people into a room meant for four and booked Manhattan hotels more than a year ahead of the games when prices were lower. Currently, he is exploring spaces in New York City’s outer boroughs such as the Bronx and Queens, along with Airbnbs in less frequented New Jersey areas.

“Some prices are completely absurd,” Salem stated.

Montclair, New Jersey, an affluent suburb, has experienced a 169% rise in short-term rental occupancy during the group stage compared to the same period last year, based on data as of March 26 from analytics platform AirDNA, which monitors rental demand, rates, and occupancy across host cities. The data indicates that nearby towns including Clifton, Newark, Paterson, and Jersey City have also seen increases.

Jamie Lane, chief economist at AirDNA, noted that as the tournament approaches, prices are set to rise.

“When bookings begin, people generally don’t book the properties with very high prices,” he said. “More reasonably priced properties do get booked, and then we observe the gap between available rates and booked rates start to narrow.”

Attending the World Cup will be costly for any spectator, particularly those traveling from overseas. Ticket prices can vary significantly, in part because of FIFA’s dynamic-pricing strategy, which raises rates based on demand. Initially, tickets started at $60 and could go up to $6,730 — though these prices increased in later batches. On the secondary market, the figures are even higher, with tickets for the highly sought-after July 19 final starting at approximately $8,000 and exceeding $50,000, according to listings on resale platform StubHub.

Salem, the French organizer, mentioned that many of his members are not attending due to the high costs. “Overall, people are complaining about the prices, and we’ve lost a lot of dedicated followers and fans who aren’t coming because of the expenses,” he stated.

Some fans are turning to smaller host cities outside major hubs, which can be more affordable. Data from Expedia Group Inc. reveals that searches are increasing most rapidly in secondary markets like Kansas City, Dallas, and Houston. Lodging prices in Canada and Mexico, outside the US, remain the most affordable.

“If you consider smaller towns, you can find venues that are more readily accessible,” said Michael Seiler, a professor of real estate and finance at the College of William & Mary.

Houston tourism officials report that the rate of hotel bookings for June and July is already more than double last year’s levels across major submarkets. In Dallas — which is hosting more matches than any other US city — searches for housing options are up 230% compared to last summer, based on Expedia data from January.

“Dallas is familiar with major sporting events, but this isn’t just another big event,” Zane Harrington, a spokesperson for the city’s tourism bureau, stated. “The FIFA World Cup is unlike anything we’ve ever encountered.”

Michael De Micco secured World Cup tickets for a match at Gillette Stadium in Foxborough, Massachusetts, through his employer, Frito-Lay Inc. He plans to drive approximately nine hours from his home near Pittsburgh and has already dismissed hotels as too costly. Instead, after finding a listing near the stadium that was beyond his budget, he is considering Airbnb and Vrbo Holdings Inc. rentals in Providence, Rhode Island.

“There’s no way I’m spending a thousand dollars a night,” he said.

Real-estate investor Geoff Colleran is on the opposite side, listing his home in Foxborough for more than $2,000 per night. He mentioned he intends to use the profits to boost his investments and pay down some debt.

“I’d be very disappointed if that entire period from mid-June through July isn’t fully booked,” Colleran said. “In a typical summer, we make $50,000 to $60,000. So I’d expect a six-figure summer.”