Short-term rental demand in the Bay Area is up for the World Cup but softer than expected, with price surges in some neighborhoods and varying demand across markets.
World Cup visitors are already boosting short-term rental demand and nightly rates across parts of the Bay Area , but early data from analytics firm AirDNA suggests the surge may be uneven and softer than some local boosters anticipated.
Demand for short-term rentals in the Bay Area is up 10% compared with a year ago for group play matches and up 17.9% for the round of 32. Nationwide, host cities are seeing an average 15% increase in demand, according to Bram Gallagher, director of economics and forecasting at AirDNA. While the Bay Area falls short of that national average for group play, it slightly exceeds it for the round of 32.
Ken DeLeon, founder of DeLeon Realty in Palo Alto, noted that the increase is less dramatic than the frenzy seen during the Super Bowl. He stated that demand is up but not to the same extent as the Super Bowl. The World Cup is the largest global sports championship, according to Leah Toeniskoetter, president of the San Jose Chamber of Commerce, who emphasized that the region has an extra spotlight on it.
Average nightly rates for short-term rentals during the World Cup are above $300 across the Bay Area, with some markets exceeding $1,000 per night. In neighborhoods like Pacific Heights in San Francisco, rates reach $1,309 for group play dates, while Cole Valley in San Francisco averages $1,270. Other high-priced locations include Belvedere-Tiburon in Marin County at $968, Cupertino at $779, and Los Gatos at $716.
For the round of 32, some markets climbed higher, such as Belvedere-Tiburon at $1,049 and Los Gatos at $783. However, Bay Area average prices for the round of 32 are slightly lower at $312 per night, down 3.4% from $323 for group play. Demand patterns vary widely by neighborhood.
Downtown San Jose saw a 29% increase for group stage and 17% for the round of 32, while Oakland experienced a 19.1% rise for group play and a 48% jump for the round of 32. In contrast, the South Bay overall saw only a 0.6% increase for group play and 1.2% for the round of 32, indicating a more tepid response in some areas.
Local leaders are hopeful that the World Cup will bring not only overnight visitors but also day-trippers and foot traffic to downtown areas, even among fans not attending matches. Viewing parties with large TV screens are planned in San Jose's San Pedro Square, where all 100-plus matches will be shown, drawing crowds day and night for three weeks.
Brian Kurtz, CEO of the San Jose Downtown Association, recalled that during the Super Bowl, some downtown restaurants saw sales surge 300% compared to previous periods, bolstering small businesses. However, Russell Hancock, president of Joint Venture Silicon Valley, cautioned that the economic boost from the World Cup, along with the Super Bowl and March Madness, may be only transitory. He stated that long-term challenges like housing affordability and traffic are structural issues that cannot be solved by tourist dollars.
The region hopes to capitalize on the global exposure, but the uneven demand data suggests that the economic impact may be more modest than some anticipated
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