France Cracks Down on Airbnb Rentals Amid Housing Crisis
- The legislation was adopted by the French National Assembly after being unanimously approved by the Senate.
- The new rules aim to address the increasing housing crisis and regulate the explosive growth of short-term rentals.
- Airbnb and other stakeholders have differing views on the implications of the new measures on hosts and the hospitality sector.
In November 2024, the French National Assembly passed legislation aimed at regulating short-term rentals, primarily targeting platforms like Airbnb. The new law reduces tax breaks for furnished tourist accommodations and empowers local mayors to impose stricter regulations, including capping rental periods for primary residences. This move comes in response to a significant surge in the number of furnished tourist accommodations, which rose from 300,000 to 1.2 million over eight years. Lawmakers expressed concerns that this boom contributed to housing shortages and speculation in the market, making traditional housing less accessible. While Airbnb has expressed disappointment regarding the additional bureaucracy and potential burdens on hosts, the hotel industry has welcomed the changes as necessary for improving accommodation regulations, ensuring a diverse and quality offering for tourists.