Housing Crisis Threatens US Cities Ahead of 2026 World Cup

The World Cup Comes With a Price

Bisnow reports that the 2026 World Cup will be the largest tournament in FIFA history. It kicks off on June 11 in Mexico City and runs for 39 days. The US will host most of the matches and has already seen rising demand with this month’s start of the Club World Cup.

With over 100 matches and millions of fans expected, US cities are ramping up construction on hotels, restaurants, and entertainment venues. But many of those visitors will also compete for housing. Cities already facing a housing crisis now face a new challenge: short-term rentals.

STRs Threaten Long-Term Affordability

Economists and housing experts say that the housing market could shift sharply as landlords chase higher profits from short-term visitors. Many cities, including Dallas and Kansas City, lack enough hotel rooms to meet expected demand.

In those cases, landlords may pull long-term units off the market and list them on platforms like Airbnb. These conversions shrink the housing supply and often raise rents — effects that tend to linger long after tourists leave.

Past Events Offer a Warning

The 2014 World Cup in Brazil and 2016 Olympics in Rio saw similar patterns. Rents in Rio rose 132% between 2008 and 2013. Over 67,000 residents lost their homes during that period. In Qatar, rents spiked as landlords listed apartments for thousands of dollars per night. Years later, local tenants still face high prices.

“Landlords can now choose between steady monthly income or a much larger short-term return,” said Victor Matheson, an economics professor at the College of the Holy Cross. “That choice gives them bargaining power”.

LA, Kansas City, and Miami Face Mounting Pressure

Los Angeles, Kansas City, and Miami are all bracing for major impact. LA must manage not only the World Cup but also the 2027 Super Bowl and the 2028 Olympics. A recent wildfire destroyed 800 rent-controlled apartments in the city, deepening an already severe housing crisis.

Kansas City, one of the smallest host cities, is already seeing STR growth outpace housing supply, adding pressure to its ongoing housing crisis. A 2024 study found that STR owners can earn 75% more than long-term landlords. The metro area is short nearly 24,000 affordable units.

Weak Enforcement Makes the Problem Worse

Local housing ordinances often ban converting affordable units into STRs, but enforcement remains weak. In LA, more than 70% of STRs operate without a license. Some landlords raise rents or push tenants out to convert units illegally.

“Once that housing is turned into an STR, it often doesn’t return to the market,” said Noah Suarez-Sikes of Better Neighbors LA. “It’s lucrative to keep operating that way.”

Regulatory Gaps and Limited Planning

FIFA now requires host nations to address human rights, including housing. But many cities haven’t communicated clear plans. Jennifer Li, director at Georgetown University’s O’Neill Institute, said most advocates lack the information they need to push for safeguards.

“The cities don’t always have the staff or resources to protect vulnerable residents,” she said. “The issue doesn’t get the attention it deserves.”

The Financial Incentive Is Strong

STR bookings already surged in Phoenix during the 2023 Super Bowl, doubling to over 31,000 listings. Early signs show the same trend for the Club World Cup this month.

“If your lease ends in May or June of 2026, why would you sign a long-term tenant when you could earn more in one month?” said Michael Frisch, an urban planning professor in Kansas City.

The Broader Economic Picture

Research shows STRs increase rent. A 2022 study from McGill University found that STRs added $810 per year to average LA rents. Another study in 2020 linked STRs to one-fifth of total US rent growth.

Airbnb argues its platform helps middle-class homeowners stay afloat, but over 30% of listings belong to hosts with 21 or more properties. Nearly 75% of listings are operated by multi-property owners.

What Comes Next

Cities must finalize their human rights action plans with FIFA by August. But few have shown urgency in enforcing housing protections. Advocates warn that unless local governments crack down on illegal STRs, renters will pay the price.

“If we let this happen,” Suarez-Sikes said, “rents will go up, people will be displaced, and the damage will last long after the World Cup ends.”