Rent control, what impact on real estate prices?

In cities, where demand for housing exceeds supply, finding housing is a real challenge. Faced with this imbalance which is causing rents to soar, the government is trying to regulate the market. Already in 2014, the Alur law introduced a flagship measure: a tenant cannot pay rent higher than that of the previous tenant. A rule which applies strictly in “tense zones”, areas characterized by high rents, high acquisition prices for old housing, and a high population density.

The rent cannot exceed a ceiling provided for by law

In these so-called “very tense” areas, it is even possible to set a rent ceiling (in euros per m²). This system, introduced in 2018 by the Elan law, will apply to 24 municipalities in the Basque Country from November 25. In Marseille, which had obtained the green light from former Housing Minister Olivier Klein in November 2022, the file is “under study», according to the entourage of Valérie Létard who succeeded her.