Paris is a popular destination in Europe for tourists looking to rent an Airbnb, with 95,000 rentals available. However, the French government passed a law in May 2024 making it harder to rent out properties on Airbnb for short-term lets. Paris is the first municipality to implement this law, aiming to crack down on illegal rentals and rental agencies dominating the platform. Airbnb hosts who do not comply with Paris’ laws could face fines reaching up to €100,000, starting from January 1,2025. Additionally, the city plans to set a legal limit on the number of nights a short-term tourist rental can house guests, with possible fines for hosts exceeding the limit. Streets could face fines if they do not remove illegal advertisements from short-term rental platforms.
The new law is likely to benefit small hotels, as the crackdown on Airbnb rentals will lead to fewer accommodation options, making boutique and independently-run hotels a more attractive choice. Parisians have welcomed this law due to the shortage of affordable housing and complaints of rowdy Airbnb neighbors. However, property managers worry about the practical implications and the cost associated with proving illegal tourist rental activity. Some associations representing holiday rental owners have raised concerns, stating that rules should be based on evidence and should not target a specific industry player with overly complex regulations. Despite these concerns, Airbnb expects the new measures to only be a wish of the Paris city council and not significantly impact its business in the capital.
With the reduction in holiday rentals in Paris, there may be fewer tourists in the central part of the city. This could alleviate pressure on iconic landmarks and attractions, while reviving neighborhood culture and allowing locals and independent artisans to afford to move back into the city center. The reduced availability of Airbnb rentals in Paris may also encourage visitors to explore other French cities such as Lyon or Bordeaux, helping to combat overtourism. However, there are concerns that the crackdown could deprive families who cannot afford hotel accommodation and lead to an overconcentration of tourism in central districts. Airbnb warns that limiting how often Parisians can share their primary home could benefit big hotel chains, drive up accommodation prices, and hurt local families who rely on hosting to make ends meet.
Paris is not the only major city to implement measures to reduce holiday rentals. New York banned short-term rentals in 2011 with mixed results, leading to more expensive hotels without improving housing affordability. Barcelona also plans to revoke short-term licenses for 10,000 holiday apartments over the next five years, with fewer than 20,000 listings currently on Airbnb. It remains to be seen how these measures will impact the tourism industry in these cities and whether they will effectively address the issues of housing affordability and overtourism.
