New housing: fewer than 40.000 sales in the first half of the year, a historically low level

After a period of relative stabilization at a historically low level, the new housing market deteriorated again in the second quarter of 2026. According to data published on September 9 by the Federation of Real Estate Developers (FPI), 19.356 homes were sold during this period, representing a decrease of 23,6% compared to the second quarter of 2025.

For the first half of the year, sales fell by 18,3% year-on-year, totaling 38.932 homes. This puts them below the 40.000-unit threshold, a level that the FPI (French Federation of Real Estate Developers) describes as unprecedented in its observatory.

Created in 2009, this system covers approximately 90% of the metropolitan market for multi-family and semi-detached housing. Its data is adjusted and updated to reflect the actual date: the results for previous quarters may therefore be revised when new information is provided by the regional observatories.

Bulk sales fall by 40,8%

The market downturn is primarily driven by the collapse in bulk sales. These fell from 8.726 units in the second quarter of 2025 to 5.162 units a year later, a decline of 40,8%. For the first half of the year as a whole, the decrease reached 37%.

According to the FPI, this contraction particularly affects sales to intermediate rental housing providers. Acquisitions by social housing providers, on the other hand, remain relatively stable.

Assisted living facilities are also contributing to the overall decline. In the sample monitored by the federation, 1.500 units were sold in the second quarter, compared to 2.300 a year earlier, representing a decrease of 34,8%.

Owner-occupiers are withdrawing from the market

Retail sales of standard homes reached 12.694 reservations, a decrease of 11,3% year-over-year. This change is mainly due to a sharp decline in owner-occupied housing, whose reservations fell by 17,9% to 9.267 homes.

Sales benefiting from a reduced VAT rate decreased by 18,1%, with 1.523 reservations in the second quarter. They represent 16% of sales in the homeownership sector, compared to 17% a year earlier.

Individual investors are the only segment showing growth. Their reservations increased by 13,4%, to 3.427 homes, and now represent 27% of retail sales, compared to 21% in the second quarter of 2025.

The FPI, however, describes this recovery as fragile due to volumes remaining far below those observed before the crisis. It believes that strengthening the status of private landlords could support this demand in the coming months.

An economic environment unfavorable to homeownership

In its economic report, the FPI places these results within an environment marked by zero French growth in the second quarter of 2026 and a 0,4% decline in household investment. The purchasing power of their gross disposable income also contracted by 0,6% during the period.

The rise in inflation, measured at 2,4% year-on-year in August, and the increase in mortgage rates are limiting purchasing power. The average rate for loans intended for the purchase of a new primary residence stood at 3,13% in the second quarter, before reaching 3,24% in July, excluding insurance and other costs.

Household savings rates remain high at 17,2%, while their confidence indicator remains at 86 in August, well below its long-term average of 100. The FPI links this wait-and-see attitude to economic, political and geopolitical uncertainties, without the observatory's data allowing the respective contribution of each of these factors to be isolated.

There are still few new programs

The decline in demand is compounded by a contraction in the supply of new housing. Developers put 18.740 homes on the market in the second quarter of 2026, 17,9% fewer than a year earlier. The decrease reached 16,7% for multi-family housing and 37,1% for semi-detached houses.

Permits for multi-family housing units decreased by 20% year-on-year, with 40.485 units authorized between April and June. While multi-family housing starts saw a temporary increase of 21%, reaching 34.497 units, their level remains below pre-crisis averages.

The available housing supply stands at 87.619 units, a volume that has remained almost stable year-on-year. This apparent stability results from the simultaneous weakness of sales and new developments. Based on reservation rates over the past twelve months, the theoretical sales period has increased to 21,4 months, compared to 18,3 months in the second quarter of 2025.

Of the available multi-family housing units, 54% are still in the planning stage, 37% are under construction, and 9% have already been delivered. The proportion of these completed units, sometimes referred to as "hard stock," exceeds the long-term average of 7% recorded by the FPI (French Federation of Real Estate Developers).

Prices are falling on average, except in Île-de-France.

The average price of a new multi-family residential unit for retail sale is €5.034 per square meter in France, excluding parking and with VAT at the standard rate. This represents a decrease of 1,8% compared to the second quarter of 2025.

However, the trends differ depending on the region. In regions outside Île-de-France, the average price decreased by 3,2%, to €4.656 per m². Conversely, it increased by 0,7% in Île-de-France, reaching €5.833 per m².

Promoter failures continue to increase

The crisis is also impacting the financial situation of operators. Based on data from the Altares firm, the FPI's economic report identifies 276 failures in property development in the second quarter of 2026, compared to 147 a year earlier, representing an increase of 87,8%.

The federation specifies that this result is amplified by the difficulties of several construction and sales companies belonging to the same group. It notes, however, that 88% of the recorded procedures are direct judicial liquidations, reflecting immediate cash flow problems.

Housing is back in the political debate

In this context, the FPI notes that housing is beginning to regain prominence in discussions leading up to the presidential election. During a debate held on August 27, 2026, at the Medef's REF (French Business Confederation), several participants specifically mentioned the creation of a formal status for private landlords and a simplification of building regulations.

The federation is also following discussions surrounding the draft law on housing recovery and decentralization. It calls on the Government to strengthen measures to support rental investment without waiting for the next elections.

“When the construction sector thrives, everything thrives. We are being heard; housing is back in the spotlight of the presidential debate. Many candidates have clearly understood this. But there is a real danger. The French people and the French economy cannot wait. The government, as it pledged to me, absolutely must strengthen the Private Landlord Statute so that it can truly achieve the objectives set together. Objectives from which we are still very far.”

Pascal Boulanger, President of the FPI