Housing construction in France in 2026: key figures, trends and real estate market forecasts

In 2026, the French housing construction market enters a stabilization phase, following several years of slowdown. The drop in housing starts recorded between 2023 and 2025 is now giving way to a gradual recovery, although construction activity remains at a historically low level.

Between economic constraints, new environmental standards and evolving housing patterns, the French real estate market is undergoing a major transformation.

A still fragile recovery in housing construction

After a difficult period marked by rising interest rates and falling property sales, new housing construction in France is expected to rebound slightly in 2026.

According to forecasts from the French Building Federation (FFB), housing starts could reach approximately 296.000 units in 2026, a level still considered insufficient by industry professionals. This represents an improvement compared to previous years, but this volume remains below the average observed before the housing crisis.

After reaching a historically low level of around 250.000 homes in 2024, new construction is gradually attempting to recover. The recovery remains fragile, with overall growth in building activity estimated at around 1 to 2%.

Building permits still insufficient

Despite initial signs of stabilization, the number of projects remains limited. According to official data from the SDES (Ministry of Ecological Transition), approximately 381.000 housing units have been authorized in France in the recent period, a level still below the average of the last five years.

Each month, the number of housing starts remains relatively low. For example, nearly 27.600 housing units were started in January 2026, which confirms the cautious approach of developers and investors.

This lack of new projects contributes to maintaining tension in the housing market in many regions.

A sector still weakened by several factors

Several factors explain the slowdown in real estate construction:

the rise in mortgage interest rates, which reduces households' borrowing capacity
the increase in the cost of land and building materials
the decline in demand for new housing
uncertainties surrounding tax schemes for investors

These factors make real estate projects more difficult for developers to make profitable, which limits new construction operations.

Structural transformations in the housing sector

Beyond the economic situation, the construction sector is undergoing profound changes in France.

A more environmentally friendly construction

The RE2020 environmental regulations are pushing building professionals to adopt more sustainable construction methods. New housing must now:

reduce their energy consumption
limit their carbon footprint
use more environmentally friendly materials

This development particularly promotes the development of wood, bio-based materials and high energy performance buildings.

The conversion of offices into housing

Faced with the rise in teleworking and the vacancy of some office buildings, the conversion of existing buildings into housing is becoming an increasingly studied solution.

This strategy makes it possible to increase the housing supply without developing new land.

The development of affordable housing

The market could also shift towards social and intermediate housing solutions, in order to address the difficulty many households face in accessing homeownership.

What are the prospects for real estate construction in France?

The trend for 2026 therefore remains one of a gradual but still fragile recovery in the housing construction sector.

If financing conditions improve and public policies support real estate investment, a genuine market recovery could occur from 2027 or 2028.

Meanwhile, new construction is expected to remain at a relatively moderate level, while the renovation and transformation of existing buildings will take on an increasingly important role.

Frequently asked questions about housing construction in France

How many homes will be built in France in 2026?

Estimates from the French Building Federation (FFB) predict around 296.000 housing units will be started, a level still lower than that observed before the real estate crisis.