While demand for housing is exploding in major French cities, rents continue to rise across the board, now exceeding inflation. In Paris as elsewhere, the situation is putting tenants in difficulty.
Ever higher rents
Rents are rising relentlessly in the 50 largest French cities. According to SeLoger data, the national level of rents increased by +4% over one year in October 2024, a figure significantly higher than inflation, estimated at only +1.1% over the same period by INSEE. This trend is part of a dynamic of several years (+3.6% in October 2023). “ For two years, the difficulties faced by households in accessing property have aggravated rental tension, as they stay in their homes longer », analyzes Alexandra Verlhiac, economist at SeLoger.
This imbalance, marked by demand increasing by +45% since October 2021 and still insufficient supply, has a direct impact on rents. Tenants are struggling to find affordable housing in large cities, where available properties are becoming scarce. The low turnover rate in the rental stock further accentuates the shortage, maintaining strong pressure on prices.
All major cities affected
The French capital, already known for its high rents, perfectly illustrates this crisis. In Paris, rents increased by +3.7% year-on-year in October 2024. This phenomenon is directly linked to a dizzying fall in rental supply (-54.8% since October 2021), leading to a shortage of properties. On average, renting an apartment of 50 square meters now costs 1,590 euros per month, an increase of 55 euros in one year. Studios are not spared: the average rent for 20 square meters amounts to 728 euros (+21 euros in one year).
This surge, however, contrasts with an encouraging sign: the drop in interest rates that began at the start of 2024. According to the broker VousFinancer, these rates now reach 3.4% on average for loans over 20 years, compared to almost 4. 3% the previous year. This reduction should allow more first-time buyers to acquire housing, which could ease the rental market slightly in the medium term. Already, the number of searches for rental accommodation has fallen by -9.4% since October 2023.
If the drop in interest rates constitutes a note of hope for households, rents remain inaccessible for a large part of the urban population. The question of housing therefore remains a crucial issue, both for tenants and for public policies.
