President plans to end rent control

The new president of the Metropolis, Véronique Sarselli, has announced her intention to end rent control, a policy she describes as counterproductive in addressing the current housing crisis. She argues that the priority should be to restart construction and increase housing supply.

Studies show limited impact of rent control

According to studies by economists Gabrielle Fack and Guillaume Chapelle, rent control has had a moderate effect on rents, but the shortage of housing has continued to worsen. LocService's tension indicator, which compares the number of applicants to the number of available offers, rose in Lyon from 9.76 at the beginning of 2024 to 12.97 in 2025, reaching 12.27 in 2026, making Lyon the most tense city in their ranking.

Multiple factors contribute to housing shortage

Sarselli acknowledges that factors such as the collapse of construction, interest rates, taxation, and energy constraints have also contributed to the housing shortage. However, she emphasizes that regulating prices has not created a single additional dwelling.

Rent control may deter landlord investment

Capping rents may discourage landlords from investing in rental properties, as their profitability is constrained. Landlords often borrow over twenty years, bear interest, property tax, charges, the risk of non-payment, and finance the work. When their costs increase but their income is capped, they may choose to invest less, renovate less, or sell their properties.

Lower rents don't guarantee accessibility

Sarselli argues that lower rents do not necessarily mean more accessible housing, pointing out a social paradox where landlords tend to favor applicants with better financial guarantees. The households that need housing the most often face the most difficulty in securing it.

Proposed solutions focus on increasing supply

Rent control, she contends, addresses the symptom rather than the cause of the housing shortage. She suggests that housing policy should focus on building more, simplifying urban planning, facilitating the division of large surfaces, putting vacant housing back on the market, accelerating authorizations, and genuinely encouraging renovation.

President emphasizes collaboration between landlords and tenants

She also emphasizes the need to stop opposing landlords and tenants, as their interests are more linked than often acknowledged. Without investors, there are fewer homes; without homes, there is more competition among tenants, and with more competition, the most vulnerable are the first to be penalized.

Real estate leader supports ending rent control

Pierre François, co-founder of Catanéo (a Lyon real estate group with 1,300 tenants and 200 real estate projects in Lyon each year), supports Sarselli's stance, emphasizing that the best protection for tenants is not further regulation but allowing them to have more housing options.