Rental property supply has fallen by 3% in Paris since 2006, but is growing strongly in the Île-de-France region.

A 15% increase in private rental housing in Île-de-France since 2006

According to the IPR, "The region had 1,54 million private rental dwellings in 2022," mainly concentrated in Paris and the surrounding municipalities. Across the entire Île-de-France region, the private rental stock increased by 15% between 2006 and 2022.

This regional dynamic contrasts with the situation observed in the capital. Paris lost 16.208 private rental units over the period, representing a decrease of 3% in sixteen years.

Conversely, the private rental supply has increased significantly in outlying areas:

• "The outer suburbs saw a 42% increase (+137.535 additional private rental units)"
• "the inner suburbs by 23,7% (+112.258 homes)"

Paris faces a rental shortage in the city center

For Emmanuel Trouillard, housing studies officer at IPR and co-author of the analysis with Anne-Claire Davy, the situation must be analyzed on a regional scale.

"There is a problem in the city centre" of the region, "but if we look more broadly at the private rental stock, it is not in such bad condition," he believes.

The study thus shows that rental pressure is concentrated mainly in Paris proper, while several departments in the Ile-de-France region continue to attract real estate investors.

Why is the rental supply decreasing in Paris?

The IPR explains the decrease in private rental housing in the capital by a decline in rental profitability.

According to Emmanuel Trouillard, this decline is explained "by the deterioration of rental profitability" linked to the "decoupling between rising property prices - which were uncorrelated with wages and supported by very low interest rates - and rents which increased, but could not keep up".

While some real estate professionals regularly blame rent control, the specialist believes that this mechanism is not the main cause of the decline in rental supply in Paris.

Investors are turning to the inner and outer suburbs

Faced with profitability deemed more attractive outside of Paris, investors reportedly favoured other sectors in the Île-de-France region, notably Seine-Saint-Denis and Val-de-Marne.

This reorientation contributes to the increase in the private rental stock observed in the departments of the inner and outer suburbs, where demand remains strong and property prices more accessible.

The boom in furnished accommodation in Île-de-France

The study also highlights the growing role of furnished rentals in the evolution of the Ile-de-France real estate market.

The growth of the private rental market is "primarily due, in recent years, to the development" of furnished accommodations. Their number doubled in the Île-de-France region between 2006 and 2022.

Emmanuel Trouillard points out that the furnished rental scheme is "more fiscally advantageous and furnished leases are shorter", offering more "flexibility" to landlords in a context of "great tensions on the rental market".

Vacation rentals and second homes are on the rise in Île-de-France

The IPR also observes an increase in vacant dwellings and second homes since 2012.

In 2022, "the share of secondary and vacant housing is clearly rising again", now representing 11,2% of housing in the Ile-de-France region.

This development comes at a time when tensions in the rental market remain high, particularly in the most sought-after areas of the Paris region.

Illustrative image of the article via Depositphotos.com.