Last week, we spoke about affordable housing in Paris. Today, let's talk about tourist rentals in the city. The city of Paris and Greater Paris (i.e. la Ville de Paris and la Métropole du Grand Paris) recently commissioned Apur (which is a non-profit that I regularly follow) to do two studies on this topic. The first was for Paris proper and the second was for Greater Paris. What they found is super interesting:

• In August 2024, Greater Paris had 149,936 tourist rentals, of which 124,988 were available for immediate booking. This represents an 84% increase compared to August 2023, which is a massive number, but maybe not entirely surprising given that Paris hosted the Olympics last summer.

• Paris proper had 97,975 listings in August 2024 and 90,299 in December 2024. Overall, the city sees fairly muted seasonality. It's also worth noting that 31% of these listings belong to hosts that own multiple properties (that is, at least two).

But let's put these figures into context. Here's a map showing the density of Airbnb listings:

Here's a map showing the number of Airbnb listings compared to the number of principal residences:

And here's a map showing the percentage of unoccupied homes in the city, which totalled 268,500 as of 2021:

The report defines an "unoccupied home" to be any home that is not used as a household's primary residence. So in addition to flat out empty homes, it includes homes that are used sporadically throughout the year for pleasure and/or for work. And as you can see, there are large sections of the center of the city where "unoccupied" and second homes make up over 28% of the total housing stock.

These areas also closely mirror the areas where tourist rentals are most popular, and where Airbnb listings make up over 20% of the housing stock. (See the second chart above.) And as far as I can tell, these are mutually exclusive classifications, meaning there are sections of the city where a large percentage of the housing stock (perhaps up to half?) is either a short-term rental or a second home.

This tells you a lot about the housing market in Paris, especially when you compare it to other global cities:

NYC, for example, is shown here as having 8.8 million people, compared to 7.1 million people in Greater Paris. And yet Greater Paris has about 4x the total number of short-term rental listings. The number of available listings (where the property was available for at least one day of the year) also increased by 84% from August 2023 to August 2024 in Greater Paris; whereas it dropped by 16% in NYC, likely because the city basically banned short-term rentals.

The two reports can be found here and here (note they're in French). And they're rich in data if you'd like to learn more about some of the dynamics impacting Paris' housing market.

Cover photo by Kris Atomic on Unsplash

This is a fascinating interview with John Andrew Entwistle, the founder of vacation rental company Wander. The way to understand Wander is that it is a vertically integrated travel company. So unlike Airbnb, for example, Wander owns all of their real estate (vacation homes in top destinations), they property manage, they asset manage, and they are building out the technology required to connect all of this stuff.

They have also created what they are calling the first ever vacation rental REIT, which means that you can buy a piece of their real estate portfolio (currently 13 properties). In addition to being a source of cash, this creates an interesting flywheel effect where maybe you stay in a Wander and then decide to become an investor in their REIT, or vice versa.

Eventually though, Wander hopes to be just as asset light as Airbnb (which again, doesn't own any real estate; they're a booking platform). The idea is that REIT unit holders will ultimately own the real estate and they will be the asset manager / technology platform that sits on top. But that they will still control the entire travel experience.

John also gets into some of the specifics of how they run their business. For example, in each destination, they hire local cleaning crews and handy people (who are not Wander employees). They typically spend about 7% of the value of a property to furnish it (which is typically around $80-150k per property right now). And their average order size is around $4.5k, which suggests that people are willing to pay a premium for this vertically integrated travel experience.

If you can't see the video above, click here.

What I was getting at with the above tweet is that I think there's way more demand, for places like this and this, than there is supply. Click on the first link and you'll see that it's booked up all summer long. And as for the second link, I just booked one of their rentals for this summer, but I have been trying -- for years -- to book it in the winter.

I think the unmet use case is as simple as this: I live in a big city, and I want to get out of the city and go somewhere cool and design-forward. There are, of course, some options. But there's a need for a lot more. Generally speaking, it feels to me like the majority of the supply is either (1) an expensive/large cottage or (2) an old "classic luxury" kind of hotel.

I'm specifically referring to Toronto and southern Ontario with these options, but judging by some of the responses I got to my tweet, this appears to be an opportunity in many other markets as well. But I would be curious to hear from all you in comments or on Twitter. What "local" hospitality offerings are missing in your market? Where would you like to travel to and stay, but can't?