Sad record drop for housing construction in France

Building permits and construction starts for new housing fell again in September and hit a new low, in the midst of the new real estate crisis, according to provisional data published on Tuesday, October 29 by the Ministry of Ecological Transition.

In September, the number of building permits issued for housing fell by 2,1% compared to August, to just 26.000, bringing the number of permits granted between October 2023 and September 2024 to 337.100.

This figure is down 9,4% compared to the previous twelve months and is the lowest since at least 2015.

As for housing construction starts, they are at their lowest level since 2000, at 18.900 in September, down 9,8% over one month. The ministry warns that the figures on construction starts are likely to be revised.

New construction is in a serious crisis. Construction costs have increased significantly due to more expensive materials and stricter environmental standards.

At the same time, buyers have suffered from the rise in borrowing rates and the reduction in public support measures for new real estate.

Between June 2023 and June 2024, 30.500 jobs will be cut, according to the French Construction Federation.

In an attempt to bring some breathing space to the sector, parliamentarians are examining the generalisation of zero-rate loans (PTZ) across the country, for new and old housing, whether collective or individual.

Building permits granted for single-family homes rebounded by 3,1% in September over one month, to 9.800 authorizations in September, while those issued for collective housing fell by 5% in September.

Geographically, Brittany is the only region to experience a slight increase in permits granted between October 2023 and September 2024 for housing (+1,5% compared to the previous twelve months).

Housing permits collapsed by 19% in Guadeloupe and Martinique over the same periods, and the drop was 63% in Guyana.

Illustrative image of the article via Depositphotos.com.