High real estate prices and interest rates - is this the explanation for the housing crisis in France?

The Confederation of Small and Medium-sized Enterprises (CPME) will meet with Elizabeth Borne on Monday. The organization is expected to report on labor issues to the Prime Minister, but the housing crisis will also be discussed. CPME has proposals for its resolution.

How can we explain this housing crisis that has been so widely discussed in recent weeks? From the professionals' perspective, not enough new residential buildings are being constructed. "We need at least 350,000 housing units to be built in France. If we compare the Spanish and German markets, the cost of construction in France is twice as high," explains Loïc Cantin, president of the National Real Estate Federation (FNAIM). "Today, we can, of course, build cheaper in France. But we need to ask ourselves: how will we build tomorrow? This is not a short-term issue; it is a long-term perspective. We are simply asking this government to think about long-term plans."

A crisis that mainly concerns the French.

Industry specialists expect the government to recognize the full complexity of the problem.

Due to the overall decline in construction, the French Construction Federation has announced that around 100,000 jobs are at risk. The entire sector is stagnating. However, if not enough housing is built, it is mainly due to the small number of buyers facing difficulties in obtaining mortgages. The housing issue affects not only professionals but also the French public. Real estate prices are very high, interest rates are rising, and banks are generally reluctant to provide loans, leaving French citizens who wish to acquire an apartment or house feeling frustrated.

“Is it possible to buy something right now? No,” says one passerby. “Prices have skyrocketed, we can’t buy anything unless we have an income of at least 10,000 euros a month,” complains another. “I can buy with the help of banks, but they are very reluctant to provide loans,” admits one passerby in a recording from the radio station “Europe-1.” “The rates are very high, so we have postponed our plans for the future,” complains a young woman who wanted to buy her own home. “We gave up, and it’s not possible. We really need to win the lottery,” adds another.

According to experts, if significant and rapid changes are not made, the situation may continue to deteriorate and last until the end of the year.