Paris To Hike Second-Home Taxes to Handle Population Drain
Paris authorities have proposed to combat the population drain from the French capital by pushing for higher taxes on second-home owners and introducing more affordable social housing for working- and middle-class families. The city’s population has dropped by more than 1,23,000 in the last decade, with many leaving in search of cheaper housing and green spaces, according to official figures. Paris is losing about 12,400 people a year and the city population – now at about 2.1 million – is at its lowest for 20 years. The Covid pandemic and lockdowns are seen as a factor but the cost of housing is a key motivation: the average a square metre is about €10,000. Many of those who have left the capital have moved further out in the Île-de-France region – that includes Paris – whose population is 12.4 million and where property and rents are more affordable. Departures from the capital are motivated in particular by the high cost of housing, the reduced supply of large housing for family and the search for a different living environment. With limited space to build new homes, the Deputy Mayor, Emmanuel Grégoire, says the only ways for the city authorities and government to take proactive measures include: Buying up buildings and forcing the owners of large offices to set aside space for controlled rent public housing; strict controls on holiday rentals; and increasing taxes on holiday homes – a measure it has so far been reluctant to introduce. Paris already requires Airbnb owners to register their property and limits the number of nights they can rent to tourists. People using property for tourism and second homes aggravate the pressure on the available housing. In November, city hall, which aims to have 40% public housing by 2035, presented a plan – expected to be passed in April – to adapt existing buildings to produce thousands of low rent and affordable housing by converting offices, garages, hotels and imposing social housing in new construction projects or major renovations. Despite the city’s huge debt of €8bn (£7bn) – compared with €1bn in 2001 – he says the money will be found because letting market forces control the availability of property in the capital would “destroy the city”, leaving it full of offices, holiday homes and the very wealthy.
Tags : Paris authorities population French housing home owners affordable