Paris, the town of affection and one of the touristy places on the planet, is taking a firm stance against illegal short-term rentals, particularly through the favored rental platform, Airbnb.
From January 1, 2025, latest regulations will impose stricter controls, significant fines, and a reduced rental limit – that is all with an aim to tackle the housing shortage in Paris.
New limits for Airbnb hosts in Paris
The Paris city council has introduced a series of measures to clamp down on short-term rental platforms. Key changes include:
- The annual rental limit for primary residences will drop from 120 nights to 90 nights, aligning with limits in cities like London.
- Unlicensed properties could face fines of as much as €100,000, while false declarations or registration fraud may incur penalties of €20,000.
- Platforms hosting illegal listings and concierge services aiding fraud may very well be fined between €50,000 and €100,000.
The Deputy Mayor for Housing in Paris, Jacques Baudrier, described the regulations as a “historic win,” marking the culmination of a decade-long effort to tighten controls on holiday rentals.
Housing shortage in Paris
Paris faces a big housing crisis, with reportedly 25,000 properties currently estimated to be illegally rented on short-term platforms, as reported by The Business Times. These rentals generate roughly €1 billion annually. Critics argue that short-term lets encourage dangerous property investments, driving up buying prices and exacerbating the housing crisis for residents.
On the flip side, the crackdown is predicted to learn boutique hotels and revive local neighbourhoods by reducing overtourism in central districts. With fewer inexpensive Airbnb options in Paris, tourists might consider exploring other French cities comparable to Lyon or Bordeaux. This would help to distribute tourism more evenly across France.
The latest short-term rental measures have drawn mixed reactions. The European Holiday Home Association criticised the brand new laws, arguing that they unfairly goal the rental industry without addressing the broader housing challenges. UNPLV, the French short-term rental association, cautioned that the principles could deprive families of supplemental income and violate EU regulations. In a press release for Euronews, UNPLV commented, “While the high cost of living in Paris is pushing many Parisians to depart the capital, the brand new measures envisaged by the town of Paris will deprive furnished rental owners of the opportunity of topping up their income and meeting their expenses or the price of energy renovation of buildings.”
Airbnb has also pushed back, calling the regulations a “diversion” from the true issues affecting housing. It pointed to cities like New York, where similar measures had limited success in improving housing affordability.
Paris is just not alone in its efforts. Cities comparable to Barcelona, Spain, have already implemented similar restrictions to deal with housing concerns. While these measures often profit local residents and hotels, critics warn they risk driving short-term rentals underground, limiting their effectiveness.
As the changes come into effect, tourists and locals alike will feel the impact of this significant shift in Paris’ approach to short-term rentals. For those planning a Parisian escape, be mindful of the less lower-cost Airbnb options before booking your flights.
