France's housing crisis has become a major concern, with constant debates over how to meet the growing demand for affordable housing. Among the different approaches, the question of finding a balance between seasonal rental and long-term rental emerges as a potential solution. Can there be a compromise between these two types of rentals to help resolve the housing crisis in France? Our concierge agency in Lyon is now trying to answer this complex question.
The challenges of the housing crisis in France:
It is generally accepted that the housing crisis is rooted in 3 main points which are linked to each other. The first is the housing shortage. Many French cities are facing a shortage of long-term rental and/or residential housing, leading to an increase in rental market prices. Our agency concierge in Lyon is a direct witness to this, Lyon being often cited when the subject of the housing crisis is raised. Then, real estate prices increased significantly, making home ownership difficult for many citizens, without even considering the current difficulties in accessing real estate credit. Finally, urban areas and particularly city centers, are feeling increased pressure due to high tourist demand and investments in vacation rentals.
Benefits of vacation rentals for the housing crisis:
Greater Rental Yields: Vacation rentals can offer higher financial returns for landlords, which can boost investment in real estate locally. Note here that only 8% of properties rented via Airbnb are intensively rented: 92% are all or part of the main or secondary residences usually for the use of their owners. This argument must therefore be taken for what it is and represents on the ground.
Stimulation of the local economy: Vacation rentals can boost the local economy by attracting visitors to less touristy areas. Airbnb has recently again proven its ability to attract travelers to destinations that are not the most popular and regularly communicates on these lesser-known but equally pleasant destinations for leisure stays.
Return of vacant housing to the market: Owners of vacant properties can take advantage of vacation rentals to showcase their property and generate income. Regulations and State benefits play a big role here: the administration tends to tighten the criteria for renting properties (long-term as well as short-term) while providing in return aid for renovation for prevent the rental of outdated, indecent or even dangerous housing for their occupants.
The benefits of long-term rental for the housing crisis:
Rental stability: Long-term rentals provide stability for tenants, with longer contracts and relatively stable rents. This also has the advantage of attracting new residents to the city and thus actively participating in the municipality's economy through taxes that directly benefit the local community.
Reduction of pressure on the real estate market: By encouraging long-term rentals, pressure on the real estate market could be reduced, allowing for better price regulation. This price regulation would be felt both on rents and on the resale values of property, making the acquisition of real estate easier in many sectors.
Restoring balance in urban areas: By promoting long-term rentals, it may be possible to restore some balance between the needs of local residents and visitors. This balance would allow year-round residents to find accommodation easily and at affordable rates while maintaining sufficient tourist capacity to meet traveler demand in high season.
The opinion of our Lyon concierge service: We need to find a balance between LLD and LCD
It is highlighted here that the situation is particularly complex. The advantages and disadvantages are both admissible. The question of dosage then arises: all LLD cannot work, any more than all LCD. Our concierge agency in Lyon notes every day that this balance, partly broken, is essential to maintain a thriving real estate market rich in opportunities.
In these conditions, finding a balance between these two rental methods seems to be a perilous exercise where both parties risk losing out. However, putting in place strict regulations to govern seasonal rentals, limiting rental periods, and guaranteeing that owners respect the standards would already be a first step. Favoring long-term rentals by offering tax advantages or other advantages to owners who choose long-term rentals rather than seasonal rentals would help restore the financial balance of investors through long-term rentals. Of course, this does not go without concretely assessing the specific needs of each region to determine which approach to adopt.
Finding a balance between seasonal rental and long-term rental can be a way to address the challenges of the housing crisis in France. By taking a nuanced approach, involving tailored regulations and incentives for landlords, it is possible to create a balance that supports both the interests of landlords and the long-term housing needs of French citizens. Careful consideration and collaboration among stakeholders will be essential to find lasting solutions to this complex crisis.
