2024 Housing Account Report: Sharp decline in real estate activity, but increase in tax levies

Real estate activity, amounting to 337,7 billion euros, experienced a sharp decline of 10,5%, linked to the contraction of acquisitions in existing properties and the decline in investment in new housing.

Housing assistance, including payments and spending reductions, totals nearly €43,1 billion. This represents a 1,1% decrease, due to a reduction in social benefits, particularly those related to the energy voucher, and a decrease in aid linked to the "MaPrimeRénov'" scheme. Conversely, interest rate advantages have increased significantly, reflecting the rise in market rates.

The housing account report determines, for all housing and accommodation premises, the housing expenditure, presents the place of housing in the economy and describes the state of the housing stock, its mode of occupancy and its evolution, for the year 2024.

Macroeconomic context and main developments in housing expenditure

The year 2024 is marked by a slowdown in prices after several years of high inflation and sluggish economic activity, particularly in terms of investment. In this context, total housing expenditure by all economic agents increased moderately, by 1,6%, reaching €618,9 billion. This slowdown continues after the rebound following the health crisis. This increase in total expenditure is driven by the rise in the value of current expenditure, while investment in housing declines once again.

The housing stock

As of July 1, 2024, the housing stock comprised 38,3 million ordinary dwellings and 1,1 million accommodation units. The ordinary housing stock consisted mainly of primary residences (82,5% of the stock), but also of secondary residences (9,8%) and vacant dwellings (7,7%).

Current expenses

Current housing expenditure covers all expenses incurred by households for housing: rent, utilities, and fees for people living in accommodation. In 2024, current expenditure for occupants amounted to €455,4 billion, of which €445,5 billion was for occupants of 38,3 million ordinary dwellings and €10,0 billion for the 1,1 million people in collective accommodation.

Real estate activity

In 2024, real estate activity declined by 10,5% compared to 2023, reaching €337,7 billion. This decrease is linked to a drop in existing property transactions (-13,3%) and a decline in new construction (-12,8%). Conversely, the maintenance and improvement sector grew by 2,3%, but less than the previous year.

Housing assistance

Housing assistance encompasses all financial benefits (payments and expense reductions) granted to consumers or providers of housing services. It helps consumers find housing and providers invest in the construction of new homes and the improvement of existing housing quality. Primarily funded by public authorities (the state and local governments) and businesses, this assistance amounted to €43,1 billion in 2024.

Withdrawals

Housing-related taxes are generated by the occupancy, ownership, rental, construction, acquisition, or sale of housing. In 2024, these taxes amounted to €99,2 billion, representing 7,9% of all mandatory levies, compared to €96,7 billion in 2023. Nearly three-quarters of these levies consist of value-added tax on housing investments or expenses related to their occupancy (€29,4 billion), property tax on built properties (€30,5 billion), and transfer taxes (€11,2 billion).

Data

The housing satellite account traces, from 1984 to 2024, all housing-related expenditures made by all economic actors: households, legal entities, the State.

Illustrative image of the article via Depositphotos.com.