Paris cracking down on Airbnbs « Euro Weekly News

Paris, the city of love and one of the most touristy places in the world, is taking a firm stance against illegal short-term rentals, particularly through the popular rental platform, Airbnb.

From January 1, 2025, new regulations will impose stricter controls, significant fines, and a reduced rental limit – this 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 up to €100,000, while false declarations or registration fraud may incur penalties of €20,000.
• Platforms hosting illegal listings and concierge services aiding fraud could 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 significant 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 approximately €1 billion annually. Critics argue that short-term lets encourage risky property investments, driving up buying prices and exacerbating the housing crisis for residents.

On the flip side, the crackdown is expected to benefit boutique hotels and revive local neighbourhoods by reducing overtourism in central districts. With fewer affordable Airbnb options in Paris, tourists might consider exploring other French cities such as Lyon or Bordeaux. This would help to distribute tourism more evenly across France.

The new short-term rental measures have drawn mixed reactions. The European Holiday Home Association criticised the new laws, arguing that they unfairly target the rental industry without addressing the broader housing challenges. UNPLV, the French short-term rental association, cautioned that the rules could deprive families of supplemental income and violate EU regulations. In a statement for Euronews, UNPLV commented, “While the high cost of living in Paris is pushing many Parisians to leave the capital, the new measures envisaged by the city of Paris will deprive furnished rental owners of the possibility of topping up their income and meeting their expenses or the cost of energy renovation of buildings.”

Airbnb has also pushed back, calling the regulations a “diversion” from the real issues affecting housing. It pointed to cities like New York, where similar measures had limited success in improving housing affordability.

Paris is not alone in its efforts. Cities such as Barcelona, Spain, have already implemented similar restrictions to address housing concerns. While these measures often benefit 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 fewer lower-cost Airbnb options before booking your flights.