Paris Housing Crisis Deepens Amid Criticism of Public Policies and Political Leadership

The housing market in France, especially in Paris, faces a severe crisis characterized by soaring demand, declining rental stock, and discouraging fiscal policies that disincentivize landlords. Danielle Dubrac, president of the National Union of Real Estate Professionals (UNIS), describes the government’s housing policy as a "cynical sleight of hand," highlighting the incoherence of public measures that alienate private landlords. With 50 to 200 applicants competing for each rental unit in metropolitan areas and three million people seeking social housing, the imbalance is stark. Factors such as the 2021 Climate Resilience Law reducing rental stock, increased property taxes, and higher risks of unpaid rents exacerbate the crisis, contributing to a decrease in homeownership from 58% to 57%.

In Paris, under the administration of Mayor Anne Hidalgo since 2014, housing policies have been criticized for favoring middle and upper-class populations, contributing to gentrification and pushing working-class residents out of the city. While 57,437 social housing units were reportedly added in ten years, many remain inaccessible to lower-income groups amid surging real estate prices, with average costs per square meter rising to €9,751, a 20.1% increase in the last decade. Hidalgo’s administration has also been accused of repressing workers’ rights and endorsing xenophobic and exclusionary measures against immigrants and marginalized groups.

As Hidalgo’s term ends, her successor Emmanuel Grégoire promises continuity in socialist policies, although his initiatives, such as promoting sustainable school canteens and shared urban gardens, do not directly address the pressing housing affordability issues. Dubrac warns that the proposed expansion of rent control law risks further discouraging investment in rental properties, potentially deepening the housing crisis. She calls for coherent and immediate government action to restore confidence among landlords and improve housing availability for all demographics in France.

The current situation presents a complex challenge balancing social equity, affordable housing, and sustainable urban development amid political and fiscal constraints.