Building permits up slightly in July, but still down sharply year-on-year

In July, 30.000 building permits were granted (+7,1% compared to June). But from August 2023 to July 2024, 348.200 housing units were authorized for construction, 12,1% less than in the previous 12 months.

New construction is in a serious crisis. Construction costs have increased significantly due to more expensive materials and stricter environmental standards.

At the same time, buyers suffered from the rise in interest rates and the reduction in public support schemes for new real estate.

This is starting to have effects on employment, with several promoters having announced social plans while smaller players are filing for bankruptcy. The French Building Federation fears 90.000 job losses by the end of 2024, then 150.000 by mid-2025.

In detail, "individual housing permits decreased by 24.600 housing units between August 2023 and July 2024 compared to the previous 12 months (-16,5%) to return to 124.600 units", indicates the ministry.

Within collective housing, 223.700 housing units were authorized between August 2023 and July 2024, i.e. 23.200 fewer (-9,4%) compared to the previous 12 months.

Residences (students, seniors, etc.) are doing somewhat better with a drop of -6,9% compared to -10% for ordinary collective housing.

The number of construction sites started, which traditionally follows the number of building permits, increased in July compared to the previous month. In total, 272.900 housing units were started between August 2023 and July 2024, down -20,2% compared to the previous twelve months.

The ministry warns, however, that this last figure is more questionable due to a more fragmented collection of data on construction starts.

Illustrative image of the article via Depositphotos.com.