overruns remain commonplace

In the first quarter of 2024, more than one in four Parisian rental properties was offered at an amount higher than the rent control ceiling. A figure calculated on the basis of 1,500 classified ads, posted on eight real estate sites (SeLoger, Orpi, PAP, Leboncoin, etc.) and passed through the filter of the free Framing extension.

Downloadable from Rent supervision and installed in the web browser, this application displays a label for each ad viewed on the sites in question. It is green if the rent complies with the framework, red otherwise. The tool was created in 2019 by Aymeric Dominique and Thomas Legrand, two engineers then faced with the Parisian real estate jungle for their own housing search.

Since then, their application has processed 60,000 advertisements, including 40,000 in the capital. From this database, it appears that 40% of Parisian advertisements in the private rental market exceeded the ceilings in 2020, a rate which has since fallen, but remained close to 30%, in 2023.

In graphics | Article reserved for our subscribers The effects of rent control in Paris, Lille, Lyon, Bordeaux and Montpellier

Of course, this rate sometimes includes authorized rent supplements, but the conditions which would justify them are not always detailed in the advertisements. However, official sources calculate a roughly equivalent percentage of irregularities: if it is 29% in Paris in 2022, according to the Supervision extension, it rises to 28% for the Rent Observatory of the Paris metropolitan area (OLAP).

The slight shift would be linked to the fact that “it is often the most expensive properties, those which are difficult to rent, which are the subject of advertisements”, notes Geneviève Prandi, director of OLAP. The samples studied by the observatories consist of a large proportion of properties that can be rented without intermediaries.

The divergence is stronger on the average amount of overruns. OLAP estimates it at 160 euros per month, a stable level since 2016. “With inflation, we can consider that this amount is falling in constant euros”, notes its director. The extension data shows, for their part, a median amount clearly increasing, from 137 euros per month in 2020 to almost 190 euros in 2023.

Balance of power

Rental professionals or individuals, who applies rent control less well? Here too, there is sometimes a gap between official observations and user data. The Framing tool identifies a real tendency towards excess on sites without mediation, such as Leboncoin and PAP. An analyst from one of the observatories finds a “identical distribution between rentals with or without intermediary in the total panel, and in the portion where the rent is not compliant”.

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