Why Airbnbs Will Cost Even More in 2025 ?

© Unsplash/Andreas Davis/Presse-citron

The arrival of Airbnb on the market has completely changed our habits. For a long time, Airbnb has established itself as the solution for going on a weekend or vacation for a fairly reasonable price, a much more interesting alternative than a hotel. Sharing accommodation with other people could even appeal to more than one traveler looking for adventure. For a long time, it was believed that Airbnb could well sign the death of hotels (or almost). In reality, the ubexrization of the platform shows that at present, renting short-term accommodation on Airbnb is no longer as interesting. A study recently showed that hotels are even cheaper than Airbnb rentals in 24 of the 30 most popular tourist destinations in the world, even if France remains an exception.

Today, the government wants to toughen taxes on furnished rentals, including seasonal rentals such as Airbnb. This is bad news for owners, but also for consumers. Indeed, if this is enacted, prices on Airbnb could well skyrocket.

Fewer tax benefits…

The government wants to encourage owners to favor traditional unfurnished rentals. In this sense, the finance bill currently under consideration plans to eliminate a tax loophole in order to make the rental of furnished accommodation by individuals less tax-advantageous. This concerns medium and long-term rentals with a minimum lease of one year but also, and above all, seasonal rentals such as Airbnb. According to Nice-Matin, this measure should bring in 200 million euros next year.

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To put it simply, an individual who rents out their furnished property can now deduct depreciation from their rental income, without it being taken into account in calculating the capital gain on the property when it is sold. But that will soon be history. By removing this tax loophole, individuals could be subject to higher taxation.

If this measure is actually adopted, it could stem the severe housing crisis we are going through. Owners could then favor traditional unfurnished rentals. But those who persist with seasonal furnished rentals, particularly on Airbnb, will certainly have to compensate. And this involves increasing prices.

But as Marc Wyler, a Nice real estate agent, points out to Nice-Matin, it is difficult to know at this point what will ultimately be decided. Indeed, it should be remembered that tourist rentals combined brought in 43 billion euros last year. This is a colossal figure. We must therefore be patient, but the reign of Airbnb is gradually cracking…

• Airbnb-type seasonal rentals are in the government's sights
• The elimination of a tax loophole would make furnished rentals less advantageous for owners
• This could stem the housing crisis and drive up prices on Airbnb

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