Building permits for housing declined slightly while housing starts rebounded in July

Authorizations for new housing declined slightly in July 2026. In total, 29.577 housing units were authorized for construction in France, a decrease of 2,5% compared to June, according to provisional data from the Service des données et études statistiques (SDES).

This decrease follows a 5,6% decline in June and a 17,8% increase in May. Monthly data are adjusted for seasonal variations and the effects related to the number of working days.

Collective housing puts pressure on permits

The decline recorded in July stemmed primarily from multi-family and residential housing. Their number fell by 4,2% month-on-month, reaching 17.678 units, following a 6,8% decrease in June.

Permits for individual housing units are holding up better. They increased by 0,1% compared to the previous month, with 11.899 units.

These figures correspond to the number of authorized dwellings and not the administrative number of permits issued. A single building permit can indeed cover several dwellings, particularly in the case of a multi-unit development.

A level still below the average of the last five years

Between August 2025 and July 2026, 370.673 housing units were authorized for construction. This volume remains 9,5% lower than the average observed during the previous five years.

However, a slight improvement has been observed since the beginning of 2026. According to the SDES, "the average monthly level of authorizations remains 1,4% higher than that observed over the whole of 2025".

This relative improvement must be seen in the context of the low starting point. In 2025, only 264.800 housing units had been started, compared to 388.400 in 2022 and 412.600 in 2021.

Construction starts rebound in July

The signal is more positive regarding the work actually undertaken. Starts of multi-family housing increased by 11% in July, after a slight decline in June, reaching 17.179 units.

Construction starts for single-family homes increased by 5,7%. This monthly increase could support the activity of structural work companies, finishing work companies, material manufacturers and other stakeholders in the sector in the short term.

The overall annual figures remain very poor. Over twelve months, 296.131 housing units were started, 11,8% fewer than the average of the previous five years. The rebound in July therefore does not yet allow us to conclude that there is a sustained recovery in new construction.

Preliminary statistics subject to revision

The SDES emphasizes that these estimates are provisional. Information from permits and declarations of commencement of works may be transmitted with delays, which leads the statistical service to regularly revise the results for previous months.

The change in housing starts between May and June has thus been lowered by 0,8 points since the previous publication.

Seasonally adjusted data makes month-to-month comparisons easier, but twelve-month trends are generally more relevant for assessing the underlying market situation.

The developers remain pessimistic

The monthly improvement in construction projects contrasts with the results of the business survey conducted by INSEE among property developers in July 2026.

Their view on the outlook for housing starts has deteriorated again, primarily for homes intended for sale. Demand for new housing also remains considered well below its long-term average.

However, developers are less pessimistic than in the previous quarter regarding their clients' financing capabilities and the evolution of their personal contributions.

A crisis fueled by several factors

The construction of new housing has been in crisis since 2023. Increased construction and land costs, rising interest rates, difficulties in accessing credit and the end of several support schemes for rental investment have slowed the launch of new programs.

The decline in sales has led developers to postpone or abandon certain operations, while the construction of individual houses has been affected by the decrease in the number of households able to finance their project.

The resumption of construction starts observed in July will therefore need to be confirmed for several months before translating into a lasting improvement for construction companies.

The Housing Bill continues its parliamentary journey

The draft law aimed at reviving and decentralizing housing, presented by the government, includes measures to simplify urban planning procedures and a new tax mechanism for depreciation in favor of rental investment.

The bill, tabled in the Senate on June 25, 2026, was adopted on first reading by the Upper House on July 8, and then sent to the National Assembly the following day. It has therefore not yet been definitively adopted.

This bill should not be confused with the bill to strengthen housing, housing supply and construction, adopted on first reading by the Senate on January 20, 2026. This second text sets, in particular, a target of 400.000 homes per year by 2030, including at least 120.000 social rental homes.