Paris Council doubles vacant housing tax to combat rental shortage

On 18 July, the Paris municipal council approved a doubling of the vacant‑housing tax that will take effect in 2027. Under the new rates, the tax will rise to 30 % of a property's cadastral rental value after one year of vacancy and to 60 % after two years, up from the current 17 %/34 % thresholds. The city aims to retrieve roughly 20,000 empty apartments from the 150,000 vacant units recorded in Paris, with about 80,000 classified as structurally vacant, according to housing deputy Jacques Baudrier. He described the measure as a "historic victory" after a decade of debate, intended to deter owners from leaving properties unused or using them for tax optimisation.

A recent study by Institut Paris Région shows that median rents in Île‑de‑France have multiplied by nearly four since 1984, while household incomes have risen far less. In Paris, renters now devote about 34 % of their income to housing, with some single‑person households spending close to half. The tax increase is presented as a tool to improve housing availability and affordability amid these mounting pressures.