The Alliance for Housing in Ile-de-France denounces a residential route that remains blocked

As for new housing and accommodation, the crisis continues, even if some signs of improvement have appeared in certain market segments since the beginning of the year. But the withdrawal of local government aid is further accelerating the deterioration. For both social and private housing, we won't emerge from this situation without seeing private investors return to sales offices.

Recent announcements on MaPrimeRénov'

Professionals are stunned by a decision made without any consultation and which endangers the entire energy renovation chain. The Housing Alliance could include a temporary freeze on comprehensive renovations that require fraud processing. However, it is unacceptable that renovations by gestures, not affected by these difficulties, should suffer the same fate. The government must urgently lift the announced freeze on single-gesture renovations.

Existing housing

Finding

The private rental market in the Île-de-France region is in sharp decline, weakened by regulatory constraints (DPE, rent controls) and taxes, thus discouraging landlords. Rents are stagnating (in Paris: €29,4/m², or +0,2% over 1 year, at the end of April 2025) while supply is shrinking, notably due to the gradual ban on G-rated housing (more than 1 in 10 leases in Paris).

The sales market remains weak despite a slight rebound (126.924 sales in Ile-de-France, i.e. +1,6% over 1 year, to the end of April 2025), held back by prices that are still too high.

proposals

The Alliance for Housing in the Ile-de-France region denounces a pile of ineffective rules that are hampering rental investment and calls for incentive measures:

• replace rent control with a flat-rate reduction of 30% on rental income in exchange for an intermediate rent,
• cancel the ban on renting out G-classified properties,
• adopt the status of private lessor,
• perpetuate MaPrimeRénov' and increase the subsidies granted for renovations of G-classified properties,
• remove the provisions of the Boutin law which prohibit the accumulation of guarantees (deposit and unpaid rent guarantee).

New housing

Finding

The most immediate concern is supply, which has been plummeting since Covid and has reached its lowest level in 30 years this year: 9.220 homes were put up for sale. The decline is still very sharp: -32% over one year and -64% compared to the ten-year average. This deficit of new housing is all the more worrying in the Île-de-France region, in a context of strong structural demand (population growth, de-habitation, obsolescence of part of the stock).

Moreover, whether individual or institutional, investors seem to be turning away from housing. Over one year: -22% for individuals, -28% for intermediate housing, and -65% for other products (home ownership, serviced residences, co-living). Sales of social housing remain stable.

Block sales, which had helped limit the damage in 2023, are collapsing again as the coffers of lessors and institutional investors begin to run dry. In 2024, 11.800 block sales were signed, 4.700 fewer than in 2023.

proposals

• Local elected officials: The Housing Alliance is calling for building permits to be issued when they comply with PLU/PLUi regulations and for inflationary urban planning charters to be shelved. Furthermore, permit issuance must not be slowed in the face of upcoming municipal elections.
• Unblocking projects: the Ile-de-France Alliance is also calling for significant support from the courts to ensure that judgments on urban planning appeals are delivered within the legal deadlines at the latest.
• Public development agencies and developers: the Alliance for Housing calls for the simplification and acceleration of procedures and specifications.
• The IDF Housing and Accommodation Executive Committee: The Ile-de-France Alliance had requested the reconvening of this meeting to monitor housing market indicators. A first meeting was held on January 27 and requested a timetable for 2025.
• The elimination of funding for housing and accommodation from local authorities: nothing has changed since the announcements; operations are stalled. The Alliance Ile-de-France is calling for a possible budget review. Student housing and guesthouses are particularly affected.

Illustrative image of the article via Depositphotos.com.