Construction crisis: the French Building Federation (FFB) raises the alarm over government inaction

Construction crisis: a triple threat hangs over construction companies

According to the French Building Federation, the sector's situation continues to deteriorate due to several combined factors. International geopolitical tensions and the sustained increase in material costs are compounded by increasingly difficult access to credit and an economic climate that is hindering investment decisions.

As a result, overall construction activity has declined by a further 5% in 2025. On the employment front, nearly 55.000 jobs have disappeared since the end of 2022.

For the FFB, this contraction comes at a time when the needs for housing, renovation of the building stock and infrastructure remain particularly high across the country.

New housing crisis: construction starts remain insufficient

New housing remains the main point of weakness in the sector today.

According to the FFB, retail housing sales have fallen by 30%, while many real estate programs are being postponed or abandoned due to a lack of financing and economic visibility.

Construction starts remain at an insufficient level to meet the needs of the population and sustainably revive the building sector.

The federation believes that the government's objectives of producing two million homes by 2030 now appear difficult to achieve without strong support measures for homeownership and rental investment.

Energy renovation: the FFB denounces a setback

While energy renovation was expected to become a growth driver for construction companies and a major lever for the ecological transition, the momentum is slowing down.

The FFB criticizes in particular the reduction of 300 million euros in the envelope devoted to MaPrimeRénov' and is concerned about the gradual disappearance of certain aid intended for single-action works, known as "monogess".

According to the federation, these developments risk excluding many low-income households from the renovation process and hindering energy improvements in the French building stock.

"The construction sector brings in more revenue for the state than it costs. Our voice will eventually have to be heard." Frédéric Carré, president of the French Building Federation.

The building sector, an economic pillar in the territories

Beyond national indicators, the FFB points out that the building sector is a major player in local economic life.

The sector is present in nearly nine out of ten municipalities and generates jobs that cannot be outsourced, which are essential to the economic activity of the territories.

The federation is also concerned about the consequences of the cuts in funding for apprenticeships. Aid to Apprenticeship Training Centers (CFA) has reportedly fallen from €270 million to €33 million, which it believes will jeopardize skills development and the training of future construction professionals.

The 5 key figures to remember

• 5% decline in construction activity by 2025
• 55,000 jobs lost since the end of 2022
• 30% decline in new home sales
• 300 million euros withdrawn from the MaPrimeRénov' fund
• 9 out of 10 municipalities are affected by construction activity

What the FFB is demanding to revive housing construction

Faced with the scale of the crisis, the French Building Federation is calling on the government to act quickly on several fronts.

Among its main demands are:

• Maintaining the Zero-Interest Loan (PTZ) and strengthening measures promoting rental investment
• Easing of conditions for granting mortgage loans in order to support homeownership
• Preserving tax relief on low wages
• Refinancing of Apprenticeship Training Centers
• A simplification of the obligations related to Extended Producer Responsibility (EPR)
• Respect for payment deadlines and the widespread use of revisable public contracts

FAQ: Understanding the current construction crisis

Why is the construction sector in crisis?

According to the FFB, the combination of the decline in new housing, the slowdown in energy renovation, the rise in costs and the difficulties in accessing credit is permanently weakening companies in the sector.

Why are housing starts still low?

Rising interest rates, declining real estate investment and financing difficulties are limiting the launch of new residential and commercial projects.

What is the impact on employment?

The federation estimates that nearly 55.000 jobs have disappeared in the construction sector since the end of 2022.

What is the FFB asking of the government?

The federation is calling in particular for support measures for new housing, rental investment, apprenticeships and energy renovation.

Why is the building sector strategic for territories?

The sector is present in the vast majority of French municipalities and generates local jobs that are difficult to relocate.

For the French Building Federation (FFB), there can be neither sustainable economic growth, nor a successful ecological transition, nor balanced regional development without a robust construction sector. The federation is now calling on the government to quickly provide greater visibility and stability to professionals facing a deepening crisis.

Illustrative image of the article via Depositphotos.com.