Source: Journal of Housing Studies

Date Published: 10.03.2025

Link: The impact of rent control on the Parisian rental market

Examining the Parisian rental market, this article assesses the impact of the rent control policy implemented in July 2019. Enacted as a response to a 13% increase in rent over a seven-year period, the policy limited landlords to charging a maximum of 20% above the median rent (per square meter) for the geographic area. Drawing on a dataset of 559,300 rental listings (and employing a difference-in-differences model), the researchers compared Paris with eight major French cities that do not have rent control. The authors found that the policy reduced average rents by 3.7–4.2%, with the strongest impact on small apartments (up to 10.2%). One challenge was landlord compliance, as full compliance would have resulted in estimated rents falling by 8.2–8.7%. The study finds no evidence of reduced rental supply. Effects intensified over time and varied by neighborhood income levels, with greater reductions in lower-income districts. Overall, the research confirms that rent control effectively slowed rent growth in Paris without reducing the housing supply.