New York business leaders are pressing City Hall to temporarily lift strict short-term rental restrictions during the 2026 FIFA World Cup, warning that hotel capacity shortages could drive visitors and spending to New Jersey.
A coalition of business groups, including the Partnership for New York City, sent a letter to the mayor and City Council requesting the city suspend short-term rental rules from June 1 through July 31, according to the New York Post. The groups argue that without additional lodging options, hotel rates will spike and visitors will choose to stay across the Hudson River instead.
The push comes as New York and New Jersey prepare to host several World Cup matches, including the final at MetLife Stadium. The Manhattan Chamber of Commerce says a new “Summer of Opportunity” coalition is coordinating business preparations for what could be a massive influx of tourists.
MetLife Stadium will host eight World Cup matches, according to the tournament venue guide, concentrating demand in the Meadowlands area and putting extra pressure on nearby hotels and transit systems. FIFA alone could bring more than a million visitors to the New York metro area, according to the coalition’s projections.
The business groups are targeting Local Law 18 of 2022, New York’s short-term rental registration law that limits stays under 30 days unless the host is present. The law also sets caps on guest numbers and requires hosts to register with the Mayor’s Office of Special Enforcement.
City officials say the rules have eliminated a significant number of unlawful listings and strengthened enforcement tools to protect housing stock and public safety. Supporters of Local Law 18 remain wary of creating broad exemptions, even for a global sporting event.
The business coalition frames their request as a narrow, time-limited solution rather than a permanent policy change. They argue the two-month suspension would serve as a “pressure valve” during the World Cup and the city’s semiquincentennial celebrations.
Short-term rental platforms and tourism advocates contend that these rentals provide flexible capacity by utilizing existing apartments and homes. They argue this approach spreads visitor spending into more neighborhoods instead of concentrating it in traditional hotel districts.
An Airbnb-commissioned Deloitte analysis projects spending and job impacts from World Cup visitors in host regions. Business groups incorporate this data into their argument, claiming more legal, registered listings during the tournament could keep visitor money in the five boroughs rather than sending it to suburban counties or New Jersey.
The mayor’s office plans to meet with business leaders next week to discuss World Cup preparations and concerns, according to the New York Post. However, officials have not indicated any immediate plans to modify Local Law 18.
Any temporary suspension would require both political agreement and legal work to implement. The business groups acknowledge this challenge but maintain that the economic benefits of keeping World Cup visitors in New York justify the effort.
The debate highlights the tension between protecting the city’s housing market and maximizing tourism revenue during major events. Business leaders worry that strict lodging rules could limit New York’s ability to capitalize on the World Cup’s economic potential, while housing advocates fear that any rollback could undermine progress made in regulating short-term rentals.
With the World Cup still more than two years away, the discussion gives both sides time to develop their arguments. The outcome could set a precedent for how the city balances housing protection with major event hosting in the future.
The business coalition’s letter represents a coordinated effort to influence policy before World Cup planning reaches its final stages, positioning the debate as a choice between regulatory consistency and economic opportunity.
