NYC Risks Losing World Cup Windfall Due to Short-Sighted Policies

City's restrictions on short-term rentals and hotel development could drive visitors to stay in New Jersey instead of NYC.

Mar. 15, 2026 at 8:04pm

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New York City is set to host the 2026 FIFA World Cup final, which could bring over 1.2 million fans and $3.3 billion in economic activity. However, the city's policies, including a crackdown on short-term rentals and a slowdown in new hotel construction, are making it difficult for the city to accommodate the influx of visitors. As a result, many fans may end up staying in New Jersey, depriving New York of the full economic benefits of hosting the event.

Why it matters

Hosting the World Cup final is a once-in-a-generation opportunity for New York City to showcase its global status and generate significant economic activity. However, the city's restrictive policies on short-term rentals and hotel development could undermine its ability to capitalize on this opportunity, potentially handing the economic windfall to neighboring areas like New Jersey.

The details

New York City's short-term rental law, known as Local Law 18, has effectively wiped out Airbnb and similar listings in the city, reducing the available supply of accommodations for visitors. Meanwhile, a 2021 zoning rule requiring a special permit for new hotels has slowed hotel development to a crawl. Additionally, the city's contract with the powerful Hotel and Gaming Trades Council, which represents nearly 40,000 hotel workers, is set to expire during the World Cup, raising the possibility of labor action that could disrupt the event.

  • The 2026 FIFA World Cup will run from June 11 to July 19, with the final scheduled for July 19 at MetLife Stadium.
  • The citywide contract of the Hotel and Gaming Trades Council, which represents nearly 40,000 hotel workers, expires in July 2026, right in the middle of the World Cup.

The players

Zohran Mamdani

The mayor of New York City.

Hotel and Gaming Trades Council

A powerful union that represents nearly 40,000 hotel workers in New York City.

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What they’re saying

“If City Hall wants even an inch of breathing room in that fight, the obvious move would be to expand lodging supply — starting with allowing short-term rentals like Airbnb during the tournament.”

— Santiago Vidal Calvo, Cities policy analyst at the Manhattan Institute (New York Post)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

New York City's restrictive policies on short-term rentals and hotel development could undermine its ability to capitalize on the economic windfall of hosting the 2026 FIFA World Cup final, potentially handing the benefits to neighboring areas like New Jersey. To maximize the event's impact, the city should consider temporarily loosening its rules to accommodate the influx of visitors.