The latest 2025 furnished rental barometer reveals a sharp decline in supply and soaring demand across France, particularly in Paris, Lyon, and other major cities. Discover why the market is stalling, how rents are evolving, and what solutions experts suggest for a France furnished rentals market in 2026.

Why France Furnished Rental Market Is Stalled: 2025 Barometer Insights and What’s Next for 2026

A Market at a Crossroads

France furnished rentals market, once a dynamic cornerstone of urban living and mobility, is now grappling with severe imbalances. According to the 2025 furnished rental barometer published by Lodgis, a leading specialist in furnished accommodations, supply has dramatically decreased while demand remains strong or even explosive in several French cities. With rents surging in many regions and tenant mobility in sharp decline — particularly in Paris, where the average stay now reaches 8 months — the French furnished rentals landscape is facing an unprecedented crunch.

This article leverages recent data and expert commentary from the 2025 Lodgis report to analyze the causes of the stalling market, examine rental trends across France, and explore possible solutions for a more balanced scenario in 2026.

Key Takeaways: 2025 Furnished Rental Barometer

National Supply Down 24%: Across France, available long-term furnished rental properties have contracted by 24%; in Île-de-France (Paris region), the reduction is 25% for the second half of 2025.
Rent Price Trends: Rents are nearly flat in Paris (+0.9%) but climbing rapidly in the regions (average +8.83%), with cities like Lyon (+11.93%) and Bordeaux (-2.06%) showing very different patterns.
Tenant Mobility Declines: In Paris, tenants are staying longer — now 8 months on average — indicating declining mobility and less frequent turnover.
Demand Explodes Locally: Lyon (+40%), Bordeaux (+200%), and cities like Aix-en-Provence (+228%) are seeing huge spikes in demand.
Shift in Lease Types: Declining use of the mobility lease and a return of longer main residence leases, especially in Paris.

Why Is the Supply of Furnished Rentals Collapsing?

A “Measured, But Massive” Contraction

The rental barometer for 2025 paints a stark picture: almost 1 in 4 long-term furnished rentals has disappeared from the market in just one year. This isn’t just a Parisian problem. While some regions report stable stocks, others, especially dynamic cities, face soaring demand and local scarcity. The situation creates a “deeply unbalanced” market, according to Lodgis.

Legislative and Economic Pressures

Several factors contribute to this contraction, including:

Regulatory Changes: National rules (rent caps, energy performance standards, and taxation) have become stricter, making some owners reconsider putting their properties on the long-term market.
Lease Type Shifts: The Law of 6 July 1989 and changes to the mobility lease have altered how and when properties are offered.
Investor Uncertainty: Landlords hesitate in the face of unclear future regulations or less attractive incentive frameworks, choosing to withdraw or switch to alternative uses (such as short-term or seasonal rentals).

Paris & Île-de-France: A Subdued Increase, But the Real Story Is the Shortage

Rent Trends in the Capital

On the surface, Paris’s rent increase (+0.9%) might seem minor compared to the past or to current inflation rates. However, this “managed” rise masks a severe underlying shortage. With tenants staying longer and mobility plummeting, fewer properties return to the market, aggravating the crunch.

Declining Mobility

In 2025, the average furnished rental stay in Paris has climbed to 8 months, the highest ever tracked by Lodgis. Properties are less frequently available, reinforcing the cycle of scarcity.

The Regions: Where Demand Ignites Price Rises

Rents Are Rising Faster Outside Paris

The 2025 barometer uncovers a patchwork of local rental markets:

Lyon: Average rent jumped by 11.93%.
Bordeaux: Slight decrease (-2.06%) despite massive demand increase.
Aix-en-Provence: Rent decline, but explosive demand surge (+228%).

This heterogeneity shows that while stock hasn’t collapsed everywhere, demand is increasingly concentrated in regional “hot spots,” fueling dramatic rent rises where inventory is unable to keep up.

Overheating Markets

Cities such as Lyon, Bordeaux, Toulouse, and Montpellier are now absorbing much of the demand once focused solely on Paris. In some places, demand has shot up by triple digits, putting local rental markets under intense pressure.

Who Are the Tenants in 2025 — and How Are Their Needs Changing?

Longer Rental Stays and Changing Profiles

One of the most visible effects of 2025’s market dynamics is declining tenant mobility, particularly in Paris.

Longer Stays: Average duration is up 2.9% year-over-year in Paris, touching 8 months.
Decreased Turnover: With properties cycling less frequently, fewer homes are available for new tenants, tightening supply even more.

Regional Cities See New Demographics and Needs

Lyon: Shift towards professional tenants, particularly international (European and North American). Business stays now make up a staggering 72% of rentals; average tenancy dropped from 11.1 to 5.7 months.
Larger Homes Preferred: Studios now compose a much smaller share, while demand rises for larger two- or three-room apartments. This points to a more settled, possibly family or professional clientele.

Paris Retains French Tenants; International Mobility Down

The share of French tenants is up slightly, while international demand, especially from Asia, is declining. This shift changes both the duration and expectations of tenants.

Lease Types and Legal Changes: Navigating a Complex Landscape

Main Residence vs. Mobility Lease

In Paris, the mobility lease is declining (-3.4 points), while the classic main residence lease is gaining ground (+4.3 points), now representing more than a third of all new contracts. This trend aligns with elongated stays and lower turnover.

Key Rules to Know:

Main Residence Lease: Governed by the Law of 6 July 1989 (Article 25-3), intended for tenants residing in the property as their main home.
Mobility Lease: Legalized through Article 25-12, designed for short to medium-term rental to tenants with a specific temporary mobility need (students, internships, work assignments, etc.).

Impact for Owners and Investors

Navigating France’s legal frameworks is becoming more complex. While the mobility lease offers flexibility and targets specific tenant groups, the increasing dominance of main residence leases may restrict owner flexibility and contribute to decreased supply.

The Big Squeeze: Why the Market Feels “On Life Support”

Imbalances and Investor Reluctance

The phrase “on life support,” used by Lodgis, sums up the current mood among property owners and professionals in the French furnished rental sector. Without regulatory visibility and more predictable incentives, property owners remain wary — a factor prolonging and deepening the rental shortage.

Amplified by Economic and Geopolitical Uncertainty

Add to that the ongoing effects from COVID-related slowdowns, international travel disruptions, and inflation. These factors conspire to make landlords pause, making long-term investments in furnished rentals less attractive.

Solutions and Prospects: How Can France Rebalance Its Furnished Rental Market in 2026?

Restoring Confidence and Clarity for Owners

According to Lodgis, giving landlords a clear roadmap is vital. Although recent discussions on creating a formal private landlord status haven’t fully materialized, more transparency and legal safeguards are expected to reassure investors and encourage a return of supply to the market.

Policy Moves and Best Practices

Clarify Local Regulations: Landlords need clear local rules on supervision, authorizations, and controls.
Targeted Renovation & Professional Management: Vacant properties can be more quickly returned to the market if landlords are incentivized or supported through renovation grants or professional property management services.
Better Information and Online Tools: Providing easy-to-access resources about regulatory changes and tenant protections would empower both landlords and tenants.

Leveraging Regulatory and Fiscal Stability

Despite the challenges, furnished rentals may offer a more attractive fiscal and regulatory environment relative to other segments (such as short-term holiday lets). Stability here could draw investors back in 2026.

Operational Levers for Landlords

Secure Arrangements: Owners should carefully choose the right lease type, enhance guarantees, and professionalize management for better risk mitigation.
Rapid Vacancy Turnover: Incentives to renovate and furnish properties quickly could accelerate supply.
Enhanced Confidence: A stable environment and better legal protection increase owners’ willingness to offer homes for long-term furnished rental.

A Pivotal Year Ahead

2025 stands out as a turning point for France’s furnished rental market. With rising rents, shrinking supply, and evolving tenant needs, traditional models are being challenged as never before. Yet, the data also suggests possible ways forward.

The key to unlocking the market in 2026 will lie in a coordinated effort to reassure owners, clarify regulations, and encourage supply — especially in cities where demand is surging. For French cities, landlords, and tenants alike, the stakes could not be higher.

FAQs About France Furnished Rentals

Q: Are rents really rising across all of France?
A: Not everywhere. While Paris sees stable rents, many regions — particularly dynamic cities — are experiencing significant price hikes.

Q: Who are the new tenants for furnished rentals?
A: There’s a growing share of professional clients, especially in regional cities, with less international student and executive mobility compared to previous years.

Q: What solutions are being considered for the shortage?
A: Enhanced legal clarity, quicker renovations, professional management, and more information for owners are all among the proposed fixes.

For More Information

If you’re a landlord, tenant, or real estate professional interested in France furnished rentals market, keep an eye on upcoming policy changes and new data releases from groups like Lodgis. Your decisions in 2026 will benefit by staying ahead of France’s evolving real estate landscape.

More

Social Media