Can France Restore Renters' Faith in Fair Housing With Pricing Caps?

Finding an apartment to rent in France is about to get cheaper. A whole lot cheaper, in fact. This week, the French government announced details of a tough new law that will cap the finder's-fee that real estate agents are allowed to charge their rental clients. It’s just one strand of a new set of legislation that is fast turning France into one of the most renter-friendly countries in the world.

Beginning on September 15 next year, the cap’s limits will depend on the region. In Paris proper and its surrounding départements —dubbed the zone très tendue or “very strained zone” due to its high rents and high demand—agents will be allowed to charge no more that €12 (about $16 U.S. dollars) per habitable square meter. In 28 other urban areas categorized as merely “strained”—including the cities of Bordeaux, Lyon, Toulouse, Marseille, Lille, and Strasbourg—the cap will be at €10 (about $13 U.S. dollars) per square meter. For the rest of France, an €8 (about $11 U.S. dollars) cap will be put in place. Meanwhile, agents will be allowed to charge no more than €15 (about $20 U.S. dollars) total for providing an apartment inventory in Paris, stepping down to €13 (about $18 U.S. dollars) and €11 (about $15 U.S. dollars) in the other two zones.