Defenders of rent control were keen to prove the effectiveness of this measure, which is in place in the capital and several cities in France to protect tenants from excessive increases. This regulation is not set in stone, as it is an experiment being conducted until November 2026, with the final adoption subject to an impact study. Although the measure is no longer seen as a scarecrow, with right-leaning local officials who were once hesitant now wanting to implement it in their cities, it remains controversial. Property owners representatives, feeling aggrieved, see it as one of the main reasons for the shortage of rental housing on the market.
In this context, the City of Paris, a pioneer in rent control, asked the Atelier parisien d’urbanisme (APUR) to conduct a study “to provide quantifiable answers to the question of the effects of rent control in Paris.” This is the first evaluation based on econometric work, focusing solely on the impact of rent control, excluding other factors such as rising interest rates or the “thermal sieve” effect. The study used data from real estate listings from the SeLoger group and leases from the Rent Observatory of the Paris metropolitan area. It was carried out by a research team from Cesaer, a laboratory specializing in territorial dynamics and policy evaluation, under the supervision of representatives from Insee Ile-de-France.
This work, which included comparing the Parisian case with properties in other French cities that do not apply rent control, found some effectiveness in the measure. While rents in Paris continued to increase by 2.5% on average in 2022, rent control led to a reduction in this increase by 4.2% between July 1, 2019 (the date of reintroduction of the measure in the capital) and June 30, 2023. The average monthly rent observed in ads in Paris during this period was €1,469, while without rent control, it would have been €1,533, resulting in savings of €64 per month or €772 per year. The study also noted that if all Parisian landlords had complied with the existing rent control without using additional rent – allowed for properties with exceptional characteristics – the impact of the measure would have been twice as great, with rents decreasing by 8.2%.
The study indicates that although rent control has had a certain effectiveness in Paris, there are still differing opinions on its overall impact. Proponents see it as a necessary protection for tenants, while critics argue that it contributes to the shortage of rental properties. With the rent control experiment ongoing until 2026, the final decision on its adoption will depend on the results of the impact study. The study conducted by APUR provides valuable insights into the specific effects of rent control in Paris, highlighting the potential savings for tenants and the potential for even greater impact if all landlords adhered to the regulations.
As the debate on rent control continues in France, the study by APUR contributes to the ongoing discussion by providing concrete data on the effects of rent control in Paris. By comparing the situation in Paris with that in other cities without rent control, the study sheds light on the effectiveness of the measure in limiting rent increases. However, the study also points out the potential for even greater savings if all landlords complied with rent control regulations. This information will be crucial in determining the future of rent control in Paris and other cities in France.
