This topic will be discussed and discussed.
Hotels, yes, were very slow to react to changes in travel, in part contributing to the rise of AirBnB type platforms. But the loss of "regular" housing to the short term market is only part of a huge change in housing needs. So many variables are converging at one time putting all sorts of pressure on housing in certain cities. Cities, especially like Paris, can’t build up. Think of Corbusier’s plans to bulldoze the Marais and build high rises. The best return on investment in the lower interest rate era is real estate. It can be left empty and draw a return greater than money in a bond fund. Youngsters like city life where there’s stuff to do. Corporations are having to relocate to cities because that’s where the brains are.
Paris is investing heavily in infrastructure. Paris is full of construction with extending the metro lines, changing streets to accommodate changing needs for bus routes, extending the tram line in a belt to completely surround the city, developing new housing in areas formerly occupied by RR yards and tracks such as in Batignolles, the 19th at Boulevards Ney and McDonald, the 13th, around the Bibliotheque Mitterrand, Pantin and numerous other areas tourists don’t see. Huge attempts are being made to make the banlieus a part of the city. (a tram trip about the periphery of Paris would be eye opening to visitors)
Paris needs money for this and many individuals and companies are escaping paying the taxes on income they earn here. So a tightening up is necessary. Banks and other corporate investors own great swaths of Paris real estate which is held empty. The city is trying to go after them. Other reasons for vacant housing are laws that favor tenants making it possible for a small investor to loose his shirt in his purchase of an apartment for rental so he holds it empty for appreciation only. The city is trying to figure out ways to offer a form of insurance to small property owners to city insure them against bad tenants. In the land of the pied a terre, the city is trying to figure out ways to almost force second home owners to sell their property. One is by increasing property taxes in big jumps.
In Paris, the demographic change has been nothing less than phenomenal in the outer arrondissements (where I live) where housing is still affordable. However, most tourists, who are here for only a couple of days, (the average tourist stay is 2.4 days) don’t see that. Almost two versions of Paris are being created. The one where stuff is happening and the sanitized museum one containing the “must sees.” A few of us who actually live here try to get visitors out to see the action and energy in Live Paris with little success.
All of your comments are geared to only a small part of the Paris housing market. In a metropolitan population of about 10 million, 100,000 housing units are nothing but they are important in the overall housing picture in a city that is seeing huge changes.
You are all thoughtful people. These from the Atlantic (The link is below)
"The company has shifted the burden of rising prices in crowded downtown areas from travelers to residents—pushing down prices for hotel rooms, while raising rents for city dwellers. Was that Airbnb’s intent? Almost certainly not. But that is the outcome, anyway, and it is a meaningful—even, yes, disruptive—one."
"Airbnb was supposed to challenge hotels by letting tourists pay renters. But its platform is unwittingly producing a subsidy of tourists, paid for by nonparticipating urban dwellers, who bear the cost of higher rental prices."