Politics

Paris Votes on Commercial Tax to Fund Public Housing Construction

The ballot measure would direct new revenue from business taxes toward public housing construction, altering expenses for operators and unit availability for households in multiple arrondissements.

By Paris Policy Desk · Published 25 July 2026

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View of the Palace of Justice in Paris France. Photo by Constanze Marie on Pexels

Paris voters will decide in September on a ballot measure that imposes an annual levy on commercial properties above 500 square meters to finance 5,000 new public housing units over five years. The proposal applies to owners in the 1st through 11th arrondissements and directs funds through the existing Paris Habitat allocation process.

City planning records from 2025 identified a shortfall of 18,000 affordable units against demand tracked by the Ile-de-France regional housing authority. The referendum follows the council's approval of updated zoning rules in March that increased density allowances in former industrial zones near the Seine.

Consequences for Residents and Employers

Households on the central waiting list maintained by the city could receive offers for units in the 18th and 19th arrondissements sooner under expanded construction schedules. Current tenants in rent-controlled buildings would see no direct change to their leases, though new supply might ease pressure on private market listings posted through local agencies.

Retail and office operators would pay an average additional 2,800 euros per year based on property size formulas in the draft ordinance. Some smaller firms in covered districts have already begun reviewing relocation options to suburbs served by the RER network, according to filings with the Paris chamber of commerce.

Funding Figures and Next Steps

The 2026 city budget lists 320 million euros for housing programs, with the levy expected to generate 85 million euros each year if approved. National statistics institute data recorded 12,000 housing starts in Paris during 2025, short of the metropolitan target of 15,000 units.

Results will be certified by the prefecture within 14 days of polling. Construction contracts would begin procurement in early 2027 under oversight from the housing department if the measure passes.

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