Major European cities are facing a rental housing crisis amid a steadily growing population.
Paris is no exception.
Although this is not a new phenomenon, the rental market in the French capital has never been so tense, writes Euronews.
It takes an average of six months to rent a furnished studio in the city, and rental prices rose by 1% in the third quarter of this year, according to data published by estate agency Lodgis.
This can be explained by the fact that, as of 2019, rents in Paris are limited.
In other major French cities, the increase was much larger: More than 10 percent in Bordeaux and almost 15 percent in Aix-en-Provence, according to Lodgis.
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The jump is a natural result of supply and demand, says Alexis Alban, president of Lodgis.
“The shortage of housing is deepening, and the demand is constantly increasing,” explains the expert. “We are seeing confirmation of the return of international tenants, with students and digital nomads continuing to opt for traditional long-term furnished rentals,” he added.
The difficulties that people face when buying a home is one of the explanations for the crisis.
To try to tackle the problem, the French government will extend the term of 0% interest loans for low-income families and open them up to more people next year to help them get on the property ladder.
According to a statement from the French National Real Estate Federation (FNAIM), almost three-quarters (73%) of professionals report a drop in the number of properties available for rent compared to last year, while 66% also note an increase in demand.
“Rising lending rates and tightening conditions imposed on borrowers are preventing some tenants from accessing property; they are staying longer, slowing stock mobility,” Loic Canten, president of FNAIM, said in August.
He mentioned the restrictions on landlords that make them want to sell their properties.
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The tension in the market is felt even more because of the Olympic Games in 2024, when a flood of tourists, volunteers and sports teams will flow to Paris.
The government faced strong criticism when it decided to force more than 2,000 students out of their rent-controlled apartments – designed specifically for them – to host Olympic staff over the summer. A student union took the case to court, where an administrative judge stayed the order.
Paris is not the only European city experiencing an acute housing shortage.
IN London the average rent for a two-room apartment in the city center is now almost €2,500 per month. The sum is three times the average monthly wage in the UK.
The same happens in Amsterdamwhere the average rent is over €1,500 per month, which is twice the average salary in the Netherlands.
Low-income households and young people are feeling the impact of the housing crisis the most.
Italy’s short-term rental tax could jump to 26%The government plans to raise taxes on short-term rentals for owners who rent out more than one apartment
To deal with the situation, cities choose different solutions.
Vienna, Paris, Amsterdam and others have decided to crack down on Airbnb-style home rentals, which are believed to be fueling a shortage of rental properties on the market.
Berlin lifted the ban on Airbnb, but the strict rules – enforced with heavy fines – remain.
Another solution is to tax vacant properties to discourage landlords from keeping homes empty and encourage them to rent them out.
The most expensive luxury homes for rent are in LisbonThe Lisbon and Singapore markets have seen strong price growth over the past 18 months, with rents increasing by over 40%
Spain led the way with its first national “right-to-home” law passed last year, which includes a tax on landlords leaving homes unrented for long periods of time.
The French government followed this year with a similar tax for cities with more than 50,000 inhabitants.
Across the Atlantic, Vancouver in Canada and Washington in the US have taken similar measures, and cities such as San Francisco and Honolulu are considering the same.