Domino effect of the real estate crisis on the consumption of housing equipment

“One in three real estate projects has been postponed, whether on the purchase, moving or renovation side. Six out of ten French people have given up on purchasing durable goods in 2023,” notes Julien Peleton-Granier, consultant from the GfK firm.

This is evidenced by the deterioration in the figures for the different sectors in 2023.

“The decoration market will thus have lost 1,5% in value and 6,5% in volume in 2023,” indicates a study by the Xerfi firm. The liquidation of the flagship Habitat brand at the end of 2023 illustrates the difficulties of the sector.

The household appliances market fell by 2,2% in value over the year, indicates a study by GFK for the interprofessional group of household appliance manufacturers (Gifam). Large household appliances (refrigerators, ovens, stoves, hoods, dishwashers, etc.) suffered the largest decline (-3,6%).

The three main families of products are declining in value, whether cold (-4,9%), washing (-1,5%) or cooking (-4,6%).

"Anticipate"

Only the washing machine category remains stable (+0,4%), according to Laurent Cours, director of studies and statistics at Gifam, who believes that the "energy improvement" of products may have encouraged consumers to "anticipate" replacements. of devices.

Furniture sales also decreased by 2,5% in value in 2023. Integrated kitchens (-6,9%) and bathroom furniture (-5,6%) particularly suffered. The drop in volume is even greater: -8% for the entire sector, indicates the Institute for Foresight and Furnishing Studies.

The quantities of radiators and towel dryers sold decreased by 16%. Those of gas and oil boilers decreased by 23%. Pellet boilers fell even more sharply, showing a drop of 73% (source: Union of thermal, aeraulic and refrigeration industries Uniclima).

All these products at half mast have a common denominator: they are part of the investments made when purchasing a home or moving. However, the entire real estate market is going through a severe crisis.

New construction shows a sharp decline, with a drop of 22% in construction starts and nearly 24% in building permits in 2023, according to provisional figures published by the Ministry of Ecological Transition at the end of January 2024. Sales in the old ones also fell by 22% (source National Real Estate Federation).

At the same time, the rental market has seized up due to the shortage of available properties. In particular, the ban on the rental of housing classified G in their energy performance diagnosis.

This domino effect of the real estate market on capital goods aggravates the severe consequences on the building market denounced by professionals in the sector in 2023 and expected to increase in 2024.

The French Building Federation thus alerted the public authorities in December of the inevitable entry into recession in the sector. This anticipates a “clear decline of 5,5% in building turnover in volume in 2024” and resulting job losses estimated at 90.000 that same year. This does not bode well for all the equipment markets that depend on it.