Home Construction Market in 2024: Customer Profile, Characteristics and Project Financing

In view of the evolution of buyer profiles in 2024 marked by the decline in first-time buyers, the Hexaom Group welcomes the return of the PTZ for house construction, an essential boost to support young households in their life project!

Average budgets on the rise

In 2024, Hexaom delivered 5.141 homes, confirming its leadership in home ownership in France. While the average living area of ​​homes remained stable at 106 m², the average budget allocated to their construction increased by 10% compared to 2023 to reach €318.000 including land, excluding notary fees and additional costs, in line with inflation but also the choice of services.

• Average overall budget in 2024: €318.000 including tax (+10% compared to 2023)
• Average budget dedicated to the house: €200.000 including tax (+7,5%)
• Average budget for the land: €118.000 including tax (+15,6%)

This increase is therefore linked to the evolution of construction costs and raw materials, land (+ 15% of budget dedicated to the purchase of land) but also to the evolution of the desires and needs of the French: "This increase in budgets reflects a growing need of the French since Covid to have more comfortable housing better adapted to their expectations. However, the average budget of houses of €200.000 including tax masks significant differences since, well aware of the budgetary problems of young households, we offer houses from 50 m2 and €100.000 including tax as well as tailor-made houses for the most demanding customers at more than €400.000 including tax. This approach has the same objective: to offer high-quality, energy-efficient houses, in accordance with environmental requirements," explains Loïc Vandromme, Managing Director of Hexaom.

The evolution of living space also shows an increase in both small and large areas, with a decrease in the intermediate segment, reflecting the diversity of budgets and desires of French households:

• houses of less than 90 m² represent 35,5% of houses, a figure up 13,5 points,
• Houses of 90 to 110 m², although still the majority (32,1% of constructions), are down 16,6 points.
• houses of more than 110 m² represent 32,4%, up 3,1 points over one year.

For Steve Beaudel, Sales and Marketing Director of Hexaom: "This change is explained by the elimination of the zero-interest loan in April 2024, which, by reducing household budgets, led them to consider homes that were initially smaller but could be adapted. Credit rates, still high in 2024, weighed on the budgets of low-income households, who did not always have the necessary deposit to compensate for the drop in borrowing capacity."

Hexaom also notes a decline in the number of houses in subdivisions, which now represent only 47% of houses (-4 points) versus 53% for houses in scattered areas, now the majority following plot divisions. The distribution between single-story and two-story houses has also changed slightly: 54% of houses built are single-story (-3 points compared to 2023) while 46% are two-story (+3 points).

Mostly young customers and couples

Unsurprisingly, the profile of home buyers in 2024 highlights a rather young population, mostly made up of couples: 75,5% of buyers are couples (+1,2 points). The average age is 41,5 years, but 1 in 4 buyers is under 30. 45% are between 28 and 42 years old. But while the majority of buyers are first-time buyers (54,7%), their share fell by 7 points in 2024, particularly in connection with the elimination of the PTZ (zero-interest loan). Investors remain a minority (6% of buyers), although this figure is up 3,6 points, with homes representing a response to the lack of rental housing supply. "We continue to see a strong presence of young households among our customers, with 81% of 18-34 year-olds wanting to become homeowners. The desire to own a home remains a priority for many, and a house remains the preferred accommodation for 80% of French people. This is why we strive to offer solutions adapted to young households and their financial capacities by supporting them in building up their contribution via the Hexaom kitty, but also in obtaining subsidized loans and by offering them houses adapted to their budget and scalable," emphasizes Steve Beaudel.

A concentration of house construction in tense areas

Furthermore, given the geographical scope of its customers, Hexaom welcomes the expansion of the PTZ to the entire territory for single-family homes. Indeed, 64% of homes are built in zones A, B1 and B2 (+3 points), 36% in zone C, a figure down 5 points following the abolition of the PTZ and which thus demonstrates its impact.

Nearly one in two homes (46%) is built in coastal regions. Moreover, moving between regions is actually less common than one might think. 89% of buyers have a house built within 18 km of their current home, and even 1 in 5 in their hometown!

For Loic Vandromme: "We welcome the return of zero-interest loans for single-family homes across the country. This will enable young households to build a home in both high-demand and low-demand areas. We are awaiting confirmation of the percentages, which could reach 30% of the transaction amount. This will be a significant boost for first-time buyers, with a positive impact on our business starting in 2025."

Indeed, home ownership is largely based on the use of a mortgage: 76% of Hexaom customers have used a mortgage for an average amount of €230.000 over 21,5 years and with a deposit of €56.000 on average (+€2.000/2023). Despite the end of the PTZ in 2024, 22,5% of Hexaom customers had time to benefit from it for an average amount of €62.900. In 2023, this figure had reached 33%, or one in three customers.

A strengthened commitment to renovation and energy performance

Hexaom continues its commitment to sustainable construction with houses that perform better than the thresholds imposed by the “RE2020” environmental regulations:

• 9% more efficient insulation;
• 34% reduction in energy consumption;
• Carbon footprint 16% lower than the set thresholds.

The heat pump has become the standard, equipping 96,3% of homes delivered.

For Loïc Vandromme: "Improving energy performance is at the heart of our approach. Our homes consume less and are more environmentally friendly, while ensuring optimal comfort for residents."

Alongside new construction, Hexaom continues its commitment to renovation with 8.790 renovations carried out in 2024 and more than 150.000 projects completed since the start of this activity.

Illustrative image of the article via Depositphotos.com.