Paris implements tax hikes and price targets to tackle housing crisis

The City of Paris is implementing aggressive measures to address the capital's housing crisis by targeting property prices and housing vacancy rates.

To combat the high volume of unoccupied properties, the Paris City Council has approved a significant increase in the tax on vacant housing. Effective January 1, 2027, the city will apply maximum authorized tax rates: 30% for the first year of vacancy and 60% for subsequent years. This fiscal measure aims to incentivize owners of approximately 20,000 unoccupied units to enter the rental or sales markets, addressing a situation where roughly 10% of the city's housing stock—estimated at 139,075 units excluding secondary residences—is vacant.

Simultaneously, the municipal government has expressed an objective to reduce real estate prices by 20% to improve accessibility. This goal comes as the market shows signs of stabilization after years of decline. While current estimates for mid-2026 suggest a market correction is underway, with prices averaging around €9,661/m², the city's target seeks to push prices even lower through levers such as new construction, public land use, and regulatory standards.