New housing: construction starts jump by nearly 30% in the first half of 2026

Housing permits fell by 4,8% in June after several highly volatile months, but remain up 4,2% for the first half of the year. Construction starts are up nearly 30% year-on-year, but this hasn't reversed the crisis in the new-build sector: permits granted over twelve months remain 8% below their five-year average.

In June 2026, 30.906 housing units were authorized for construction in France, representing a 4,8% decrease compared to May, based on seasonally and working-day adjusted figures. These provisional results were published by the Data and Statistical Studies Department (SDES) of the Ministry of Housing and Urban Affairs.

This monthly decline comes after several large swings: authorizations had increased by 30% in March, fallen by 29,5% in April, then rebounded by 17% in May.

"This slight decline comes after a sharp rebound in May (+17,0%), which followed two strong developments in March and April that almost offset each other (+30% and -29,5%)," indicates the Data and Statistical Studies Service.

Single-family homes and apartment buildings declined in June.

The decline affects both main segments of the new housing market. In June, 11.765 single-family homes were authorized, a decrease of 6,1% month-on-month. Authorizations for multi-family housing fell by 3,9%, to 19.141 units.

"The moderate decline observed in June is explained by a decrease in permits for collective and individual housing," explains the SDES.

In the first half of 2026, 192.100 housing units were authorized for construction. This volume represents a 4,2% increase compared to the first six months of 2025.

Authorizations remain below their five-year average

The rebound observed since the beginning of the year does not yet signal a return to previous levels. Between July 2025 and June 2026, 376.241 housing units were authorized, 8% less than the average recorded over the previous five years.

The significant monthly variations also suggest that recent trends should be interpreted with caution. Estimates are likely to be revised as missing data from the Sitadel database are collected.

Nearly 30% more housing starts in the first half

Construction starts, which correspond to the actual commencement of work, remained almost stable in June. The SDES estimates that 25.666 housing units began construction, 0,1% fewer than in May.

In the first half of 2026, 157.191 housing units were started. This volume represents an increase of nearly 30% compared to the first half of 2025, which was marked by a particularly low level of construction.

This increase, however, remains based on provisional data. The estimate of housing starts in May has been revised to 25.700 units, bringing the change compared to April down to -2,8%.

A still fragile recovery for new construction

The new housing market has been in crisis for three years. Increased construction costs, rising interest rates, and the discontinuation of certain support schemes for rental investment have weighed on developers' projects as well as on household purchasing power.

The Government is now aiming for a rate of 400.000 homes built per year. The draft law on the recovery and decentralization of housing includes, in particular, simplification measures and a new tax scheme for rental investment.

Contrary to what the initial report indicated, this bill was not adopted by the Senate in June. Introduced on June 25, it was adopted by the upper house on July 8, 2026, and is continuing its parliamentary process.