What lies behind the worrying collapse in the supply of property in Paris

While the City of Light has long been known for making life difficult for students and young professionals choosing to settle there with its catastrophic real estate supply, it seems that the current period is the worst ever in terms of housing. Now more than ever, landlords are becoming more demanding, available places are few, and prices are especially exorbitant. The reasons behind this housing crisis are multiple, and unfortunately, offer little hope for the future. Between January 2021 and September 2024, the rental supply has dropped by 55%, while demand has doubled between January 2021 and September 2023. Two numbers that perfectly sum up the alarming situation of the Paris rental market.

While paying over €1000 for a studio barely reaching 30m² once seemed absurd, it is now the norm defining rents in Paris, forcing residents to settle for the minimum, while still paying an amount that elsewhere would give them access to a villa. “This situation is the direct consequence of the state of the transaction market in the capital,” explains Alexandra Verlhiac, economist at MeilleursAgents. “For the past three years, with very high prices and rates, first-time buyers have been unable to buy and have stayed in their homes, severely limiting the natural turnover rate.” Once a viewing is secured, there’s no guarantee that the deal is already done, because while the listing might seem tempting, the reality is often quite disappointing. “Some apartments, described as furnished, only had a table, two chairs, and a bed. And even then, when you can visit… Because, within ten minutes, some landlords had to handle 200 messages after publishing their ad,” explains a young French woman searching for the rare gem to the newspaper Le Parisien. In this apartment hunt, it is also essential to remember that scams and so-called ruthless landlords are everywhere.

As for landlords, the situation is not much brighter, because despite a relatively low turnover rate due to high interest rates preventing purchases, they are overwhelmed with requests and are becoming more demanding. “It must be a single tenant who earns three times the rent, with a permanent contract without a probation period, and with a Visale guarantee (a state-backed guarantee against unpaid rent),” demands a Parisian landlord. “I also look at the introduction texts, and spelling mistakes, for example, are a deal-breaker.” she adds. The real estate agency PAP also notes that the situation worsens every year. The agency's CEO is alarmed by the record number of contacts for studios recorded in 2024, exceeding 1000 calls and contacts within 24 hours. Paris is not the only city affected, as the problem is also beginning to extend to the Paris suburbs, a safety net for tenants in difficulty. Over 100 contacts within 24 hours for the small crown suburbs, explains the CEO: “proving that the problem is spilling over into the suburbs.”

Another important factor also adds to the equation: the increasing number of vacant properties, apartments left empty and not put up for rent. In 2020, approximately 262,000 were recorded in the capital, nearly one in five, but four years later, they now number 290,000. This fact worries real estate agencies, who now fear there will never be enough supply to meet the demand. The consequences are undeniable: this ever-growing scarcity of apartments and rooms for rent has led to a rent increase of 7.7% compared to the period from January to September 2023. Tenants choosing to live there must pay an average of €1,585 per month for an apartment of 43m² in the capital.