Airbnb issues doomsday letter to Los Angeles ahead of World Cup: ‘Act now!’

Airbnb has issued a doomsday letter to Los Angeles ahead of the 2026 FIFA World Cup as prices skyrocket and are frustrated by red tape.

The short-term renting giant demanded the city end rules banning second homeowners in the region from letting them out as vacation homes during the tournament.

The move, the note claims, would lead to an explosion in properties available for visitors and add over $100 million in taxes to the local government.

Prices have gone nuclear across Los Angeles and San Francisco, the two World Cup tournament locations in California.

A Deloitte study found in the City of Angels a host can make up to $5,100 for the week, with dozens across the city currently listed in the thousands.

The letter sent to LA City Council, exclusively obtained by the California Post, was backed by a coalition of businesses including Airbnb and called for the Vacation Rental Revenue Plan to be actioned.

Supporters say it will unleash thousands of new rooms across the city during the World Cup, as well as bring $110 million a year in cash.

They urged lawmakers to move quickly on the proposal because they say it risks blowing a major economic opportunity if it does not go ahead.

They argue it would modernize Los Angeles’ short-term rental rules and allow a limited number of second homes to legally operate as vacation rentals under a regulated system.

The coalition wrote: “Every month Los Angeles does not adopt this policy, it is losing millions of dollars in revenue that would save city services and critical jobs.

Their letter was addressed to Council President Marqueece Harris-Dawson, Planning and Land Use Management Committee Chair Bob Blumenfield, Budget Chair Katy Yaroslavsky, and the full council.

The city has been slow to move on the proposal, arguing Los Angeles is facing a housing shortage — particularly when it comes to affordable housing and housing for the homeless.

But the coalition says the city can no longer afford to keep dragging its feet.

Supporters say the plan could generate more than $100 million a year in fees — including up to $110 million annually in transient occupancy tax revenue — while driving another $38 million a year in sales tax revenue from tourist spending.

But there is also the looming shortage of places to stay. Airbnb says searches for stays in host cities are up an average of 80% compared with the same time last year, while Reuters reported Deloitte estimates hosts in Los Angeles could earn roughly $5,100 during the tournament.

In other words, demand is surging, prices are climbing, and City Hall is still stuck in neutral.

Justin Wesson, Airbnb’s senior policy manager, said: “Los Angeles is set to welcome millions of visitors for global events like the 2026 FIFA World Cup and the 2028 Summer Olympics, and short-term rentals will play an important role in helping the city accommodate that surge in demand.

“By expanding responsible short-term rental options, Los Angeles can ensure visitors have places to stay while capturing additional tourism tax revenue paid by tourists, not Angelenos, and allowing local families, small businesses, and neighborhoods to benefit from the economic impact of these global events.”

Backers of the plan say this is not just about tourists hunting for beds. It is about a city warning of cuts while ignoring a revenue stream right in front of it.

“City leaders cannot keep warning families and small businesses about cuts to essential services while overlooking a practical proposal that protects communities without taxing Angelenos,” said Robert Sausedo, president and CEO of Community Build Inc.

“The Council should act now in order to demonstrate leadership and put commonsense policy into action where the city needs it most.”

The signers of the letter include Airbnb, the Valley Industry and Commerce Association, the Central City Association, the California Hispanic Chambers of Commerce Foundation, the Los Angeles Hospitality Partnership, United Firefighters of Los Angeles Local 112, multiple teamsters affiliates, IBEW locals, and a long roster of civic and neighborhood groups.

The letter also warns the city’s past talk of laying off more than 600 workers and slashing services — such as trash pickup, emergency response and public safety — showed just how fragile the budget is.

The proposal first surfaced in 2018 and quickly turned into a political fight between tourism boosters and housing activists.

It later expired under council rules before being revived. Now it is parked at the Planning and Land Use Management Committee, where supporters say it has sat for too long.

Blumenfield’s office told The Post the matter is expected to come up later this month.

“Yes, this is on the docket for later this month,” a spokesperson said. “I know he and our team have been meeting with voices on both sides of this issue.”

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