Housing crisis: Are you willing to wait 6 months to rent a studio in Paris?

advertisement

Many European cities are facing a crisis when it comes to the number of apartments for sale among a growing population.

The French capital is no exception. Although this phenomenon is not new, the rental market has never been this tense before.

It takes an average of six months to find, move in and rent a furnished studio apartment in Paris, and rental prices rose 1% in the third quarter of this year, according to data published by real estate agency Lodgis.

This limited increase can be explained by the fact that rents have been capped in Paris since 2019. In other major French cities, the rise has been much higher: more than 10% in Bordeaux and about 15% in Aix-en-Provence, according to Lodges.

Alexis Alban, president of Lodges, said the increase is a natural result of supply and demand.

“The housing shortage is getting worse and demand is steadily increasing,” Alban said. In the current situation.

“We are seeing a confirmation of the return of international renters, with students and mobile professionals continuing to choose traditional long-term furnished rentals,” he added.

The difficulty people face in buying a home may be one explanation for this phenomenon.

To try to tackle this problem, the French government will extend its 0% interest rate loans to low-income families and open them up to more people next year to help them get on the property ladder.

Six months to rent a studio in Paris

Nearly three-quarters (73%) of professionals reported a decrease in the number of properties available for rent compared to last year, according to a statement from the French National Real Estate Federation (FNAIM), and 66% also saw an increase in demand.

“Increase in credit rates Tighter conditions imposed on borrowers prevent some tenants from accessing properties; “It stays in place longer, which slows down the stock’s movement,” Loic Cantin, president of FNAIM, said in August.

He also pointed out the restrictions on property owners that make them want to “give up” and sell their property.

The rental market is feeling further pressure due to the 2024 Olympics, which will see an influx of visitors, volunteers and teams to Paris.

The government faced heavy criticism when it decided to evict more than 2,000 students from their rent-controlled apartments – specifically designated for them – to host Olympic staff over the summer.

The Student Union took the case to court, where an administrative judge suspended the request.

The ongoing housing crisis in Europe

Paris is not the only European city suffering from a severe housing shortage.

In London, the average rent for a one-bedroom apartment in the city center is now around €2,500 per month. The amount is more than three times the average monthly wage in the UK.

The same thing happens in Amsterdam, where the average rent exceeds 1,500 euros per month, more than double the average wage in the Netherlands.

advertisement

It is low-income families and young people who are feeling the burn most acutely from the impact of the housing crisis.

To address this situation, some cities have chosen different solutions.

Vienna, Paris, Amsterdam, Amsterdam and other cities decided To crack down on Airbnb-style rentals Which is believed to be fueling the shortage of properties available for rent in the market.

Berlin has lifted its ban on Airbnb, but strict rules — enforced with hefty fines — remain in place.

Another solution is to tax vacant properties to discourage landlords from keeping their homes empty and persuade them to rent them out.

advertisement

In Europe, Spain paved the way by passing the first-ever national “right to housing” law – adopted last year – which included a tax on landlords who leave their homes unrented for long periods.

This year, the French government followed suit by imposing a similar tax on cities with a population of more than 50,000 people.

Across the Atlantic, Vancouver in Canada and Washington, D.C. in the United States have adopted a similar measure, with other cities such as San Francisco and Honolulu considering the same thing.