Léandre, 27, has been looking for accommodation for two months. He has already visited around fifteen apartments, but in vain. Every morning, he scours the housing advertisements, without success. He is currently staying with a member of his family, in a 15 square meter apartment. Despite his permanent contract in events, a monthly net income of around 2,400 euros and two guarantors, his file is unsuccessful. “There are two or three apartments on which I was in the final, so to speak,” says the young event project manager. “Unfortunately each time, they take the files where the remuneration is the highest, which I can understand from a security point of view for them. There are fewer and fewer offers and inevitably in the long run we ask ourselves the question question of whether it is a good choice or not to stay in this city even if it has all the advantages in the world."

Léandre's case is far from being an exception. In Paris, the demand for housing has exploded in recent months. The supply of apartments for rent has decreased by 74% in 3 years. Professionals in the sector have also noticed this. "Out of 4 available properties, 3 have disappeared which is still quite incredible as a figure. For comparison, in France for example, over the same period, we have a drop in rental supply of 25%, so 3 times more important in Paris than in the rest of France", explains Barbara Castillo-Rico, director of economic studies at SeLoger. “As a mechanical consequence, we have rents which have started to accelerate for two years, but especially this last year in 2023. We have gone from an increase of less than 2%, to more than 3%.”

The Parisian real estate portfolio is suffering the effects of the crisis. The reason in particular is the rise in interest rates over the past two years, which deters tenants from buying. Result: they remain tenants and do not vacate their accommodation.

Thermal strainers

Another phenomenon also amplifies this shortage. In Paris, 35% of housing is thermal sieve, often classified G and F. The owners of these housing units will no longer be able to rent them by 2025 and 2028 if insulation work is not carried out, which would direct consequences on the volume of properties for rent. “Today, many properties in old buildings are classified F and G and therefore we are faced with owners who have a lot of questions,” also explains Eddy Gapihan, real estate agent. “Some are putting their apartments up for sale because they cannot afford to do the work.”

Following protests from certain landlords, the government announced a new method of calculating the Energy Performance Diagnosis (EPD) for small areas. It should come into force on July 1, 2024 and concern 11% of housing in this category. Certain properties of less than 40 square meters could therefore escape these restrictions. A boost, but ultimately not enough to replenish the market.

But while the capital suffers from a shortage of rental properties, one in five homes remains unoccupied in Paris. Second homes and occasional housing represent 262,000 empty, or almost empty, homes all year round, according to APUR.

Fraud and Airbnb

Some are notably used for furnished tourist rentals. On Airbnb alone, there are at least 60,000 officially available, according to Paris town hall. With the arrival of the 2024 Olympics, many owners want to take advantage. ADIL, the departmental housing information agency, notes an increase in takeover leave, particularly for furnished leases. “So obviously it will tempt a lot of people to be able to rent huge sums of money per night, while on the other hand the rents are regulated when they rent to tenants who occupy it as their main residence,” confirms Sophie Morvan , lawyer at ADIL, who explains that this can encourage deception. "The only way to prove that there is fraud is, once you have left, to return to the scene, to obtain testimony from neighbors, to possibly take a photo of the mailbox so that the name that had been invoked in the leave corresponds well or not, and at that moment we can think that there is fraud. There is a possible legal recourse for the tenant to obtain damages. The owner can be inflicted with a fine of €6,000."

Prospective tenants are forced to look for new accommodation, in a very delicate context. Some turn to new intermediaries and delegate their apartment search. “The goal is for us to be there, in their place, available, as soon as the apartments come out,” explains Cyril Bathélémy, research assistant. "This way, as soon as something comes out, we call as quickly as possible and book a visit. I think it's more about assistance. The goal is for the person to make the visit and everything that 'there's the reservation, everything that involves paperwork, sending a file, modifying a file, etc. it's us who do it.'

Professionals in the sector anticipate a surge in announcements in September, after the Olympics... But in the meantime, in Paris, the race for housing continues.

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