** Interview: Lyon plunges into a real estate crisis, but Metropole aims for more construction.

The second half of2023 was tough for Lyon due to a housing crisis. Reno Pair, deputy chairman in charge of housing issues in Grand Lyon, answers our questions. The real estate crisis slowed down and even halted the construction of new housing in the Lyon metropolis. (© Pierre Chemel / Actu Lyon)

The situation is "alarming", "dramatic", Renaud Pair is at no loss for words to describe the housing crisis that affects Lyon and the whole of France.

The Vice Chair of Housing, Social Housing and Urban Policy in Grand Lyon answers questions from our editorial board on Thursday, October 12, 2023.

Social housing is in short supply, there are fewer and fewer property buyers, and developers are finding it difficult to enter new building sites. An environmental party politician talks about going into "crisis management" mode. Interview.

"Families can no longer afford to buy" in Lyon and the metropolis

Actu:What is your opinion on the housing crisis that is strongly affecting social housing in the metropolis of Lyon?

Renault Pair:The situation is alarming, first of all for those waiting for social housing. Out of nine applications for social housing, only one is accepted. This situation affects many residents of the Territory and seems hopeless. In addition to social housing, there is a crisis in construction and real estate. The crisis affects every urban area in our country. That is what our conclusion is. It is an alarming and urgent wake-up call. We raised the alarm with the government a long time ago, but we were not heard.

What is the crux of the problem today? Why is the development of social housing so slow in a metropolis that is lagging behind its targets?

R. P.:Families can no longer afford to buy. It's very simple. Developers purchased land at a very high price and also faced a 40% increase in construction costs since 2020. The problem is that now they can't compensate for this by raising the prices of available apartments. We have fewer buyers due to a 4-point increase in interest rates. When the interest rate goes up by one point, we lose 30,000 buyers in the Lyon metropolitan area. So right now, it's as if we've lost 120,000 buyers.

10 million euros to save the construction of "2,000-3,000 housing units."

So now construction is no longer happening due to problems with the developers...

R. P.:The developer will only start construction after selling a certain portion of the apartments in free sale, which is not happening right now. Currently, the crane never arrives at the construction site, and housing is not being built, neither the free part nor the social part that we agreed upon. If these halted operations are not unblocked, it could lead to the loss of 2,000-3,000 housing units in the Lyon metropolitan area.

Renaud Pair, third deputy chairman for housing issues, social housing, and urban policy in Grand Lyon. (© Grand Lyon)

How is the metropolis dealing with this housing crisis?

R. P.:We have taken on the responsibility. We launched an emergency action plan in the Lyon Metropolis, which allows for subsidizing social landlords to create a bit more social housing and save developers' operations. This is a 10 million euro plan to show social landlords that they can become buyers, and developers can sell. This will save 2,000-3,000 housing units that we were about to lose, and in addition, we will gain another 600-900 additional social housing units from these operations.

Video: currently on ActuAction Logement: 80,000 housing applicants waiting

Noël Petron, director of Aura Action Logement, draws conclusions about social housing in the Lyon metropolitan area. "Due to inflation, people are no longer leaving social housing. The number of relocations is decreasing. If tenants of social housing are no longer being evicted, we can no longer offer it to employees. The supply is shrinking." He states that the number of applicants for social housing in the Lyon metropolitan area is constantly increasing. There are currently about 80,000 people waiting for social housing.

6,000 new social housing units per year: an unrealistic goal?

Most members of the environmental party regularly oppose the expansion of urban areas, but are rather in favor of developing existing surfaces. Your opposition has often accused you of no longer wanting to build...

R. P.:The metropolis is interested in construction. Two years ago, I created a committee that meets every three months with developers to review blocked building permits. We are trying to unblock building permits while simultaneously starting work on increasing building heights. The number of building permits has increased over the past six months. What I am doing with developers in Lyon has never been done before. The lack of permits is no longer an issue. I am looking for all possible solutions. In 2022, we allocated 50 million euros for the purchase of buildings. The crisis is much more serious than that faced by our predecessors. I am fighting to find a solution to this housing crisis.

Will you return to your goal at the beginning of your term of building 6,000 social housing units per year by 2026?

R. P.:These goals are still relevant. I just understand the seriousness of the crisis. I want to tell your readers that we are fighting every day because these goals are the right ones. We are in a crisis management situation, but I emphasize that these goals must ultimately be achieved. I believe that one day we will have the right amount of social housing. I have the goals in my mind, but right now I am focused on fighting the crisis, in battle mode.

“We can no longer take joy in the fact that we are not issuing building permits.”

Prefect Fabien Bussiot is concerned about the lack of new housing construction, especially social housing, and will strip mayors of their powers in urban planning within the metropolitan area. Are you satisfied with this?

R. P.:I am very pleased. We worked on this with the prefecture. I also see this as a result of our alarm signal that everything was blocked in some cities. The metropolis is fully engaged. This is the prerogative of the state, but it is not enough. This is no longer a crisis of permits. It is related to the lack of buyers. In light of the seriousness of the crisis, we can no longer be happy about not issuing building permits; it is irresponsible. What the state is doing is good, but it is not enough...

From the very beginning of your term, you have not hidden your fight against the housing policy of Emmanuel Macron and his government...

R. P.:Without a government that implements housing production policies, this is impossible. Housing policy must be carried out by the government. The recent statements make me happy regarding renovation, but they are very disappointing concerning the unwillingness to consider social landlords who use their own resources for production. I would like the government to adopt an urgent plan because we could do much more. Unfortunately, this has not happened.

Interview with Antony Sudani.

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