Estimates suggest that up to ten million people will head to the US for the 2026 men’s FIFA World Cup, with the event possibly accounting for up to one in three foreign visitors to the country this year. That’s good news given that the US has seen tourism numbers decline over the last 12 months and it’s also a positive for residential and commercial property owners who are looking to exploit the opportunities the tournament offers.
For homeowners, that could mean responding to the increased demand for extra accommodation local to stadium locations, while for commercial property like retail, hotels and restaurants, there is the possibility of taking advantage of the greater footfall. “The men’s 2026 FIFA World Cup is an exciting prospect offering lots of opportunities for both homeowners and businesses near stadium locations and fan zones,” says Hiscox London Market’s Joseph Pennyfather – Binding Authorities Line Underwriter. “But it’s not an event without risks and property owners will need to consider how they mitigate those risks to prevent a celebration of the beautiful game turning into an ugly own goal.”
Rental market Moneyball
For some New Jersey residents, the World Cup could be worth close to US$250,000. At least that’s how much property experts predict owners of luxury apartments are set to earn over the tournament if they choose to escape the football and rent out their property; one six-bedroom Airbnb property in Princeton, New Jersey, is available for US$6,000 a night. For that much, many fans might expect a short walk to the tournament’s final-hosting MetLife Stadium, but sadly, they'll have plenty of time to talk tactics given this property is still more than an hour's drive away.
Don't get a rental red card
While it seems like a great opportunity for residential property owners looking to cash in on the cup, there are some pitfalls to look out for. “First, it’s important that owners check the legality of what they’re doing,” says Pennyfather. “For example, some towns in New Jersey have put restrictions on short-term rentals, which might involve the owner having to remain on-site during the rental or there being a minimum rental period for each guest, of seven or even up to 30 days.” Secondly, owners will need to check the terms and conditions of their insurance for covering short-term rentals. “There is a heightened risk from renting out a property, particularly to multiple different guests staying for just a few days at a time. No one wants to find out that their insurance doesn’t cover the risk of their property being damaged, so making sure the property is fully protected, with appropriate deductibles and limits for this change of use, is essential,” says Pennyfather.
Commercial concerns
From a commercial property perspective, many businesses will be eyeing the revenue-raising opportunities that the World Cup can deliver, whether it’s the match-hosting stadiums themselves, through to the hotels, retail parks, or restaurants and bars. Many of these operations will want to maximise their profits from the increased footfall around the match locations and fan zones. It’s predicted that hotels, for example, will see room revenues increase from anywhere between 7% to 25% in June 2026. But more people can equal more risk. “The most obvious commercial property opportunity that people would associate with the World Cup is the stadiums,” says James Tanner, Line Underwriter for the Major Property team at Hiscox London Market. “From a risk perspective, these locations are generally well-tested for big sporting events, although most of them will be experiencing some work to get them ready, which in itself presents a challenge with extra contractors on site and the potential for accidents leading to property and liability claims.”
Perhaps of more concern are the risks to property locations close to the stadiums and fan zones, particularly from crowd trouble and demonstrations. "A bad result for a team could lead to trouble after a game, such as rioting and looting, with damage caused to nearby businesses including shopping malls, hotels and offices,” says Tanner. It’s why thorough preparation for the tournament to mitigate any possible issues is so important, adds Tanner, whether it's upgrading security systems, taking additional physical protection measures on a match day and providing additional training and protection for staff.
Get your crisis planning right
For both residential and commercial property owners not just in the US but also in the co-host countries of Canada and Mexico, the World Cup should be a positive but only if the appropriate planning and risk mitigation is in place, concludes Pennyfather: “The World Cup is an occasion for celebration but if things do go wrong, whether you own a high-end apartment in New Jersey or a retail outlet in Boston's fan zone at City Hall Plaza or the Plaza de Liberacion in downtown Guadalajara, making sure all potential incidents are planned for and the appropriate steps have been taken to minimise any losses, and insurance cover has been comprehensively reviewed, should be a top priority.”
