France's housing crisis: high real estate prices, interest rates... how to explain it?

The housing market crisis has been going on for months. While real estate representatives worry about their companies and believe the country is not building enough, the French are being deterred from potential buyers by house prices, rising interest rates and banks' reluctance to lend.

The Confederation of Small and Medium-sized Enterprises (CPME) will be adopted on Monday by Elizabeth Born. The organization is to discuss work issues with the Prime Minister and also discuss the crisis in the housing market. CPME has suggestions to overcome this situation. How do we explain this housing crisis that has been so much talked about in recent weeks?

On the professional side, the talk is that not enough new housing is being built. "We need France to build at least 350,000 dwellings. If you compare the Spanish and German markets, construction there is half the cost of building in France," explains Loic Canten, chairman of the National Real Estate Federation. "Of course, you can build cheaper in France today. But here the question arises: how will we build for the future? This is not a short-term question; it is a long-term question. We are simply asking this government to think about the future.

This crisis primarily affects the French. Specifically, industry representatives are waiting for the government to fully recognize the problem. Especially since the French Construction Federation reports a potential threat to over 100,000 jobs. The entire industry is stagnant. But more housing needs to be built, not only because of the lack of buyers, but also because of the difficulty of obtaining a mortgage.

The housing problem affects not only professionals but also the French. The high cost of real estate, rising interest rates and the general reluctance of banks to lend make the French inconsolable when it comes to housing affordability. "Is it possible to buy now? No," says one passerby. "Prices have soared, we can't afford to buy even with an income of 10,000 euros a month," laments another.

"I could buy with the support of banks, but they are very reluctant to give loans," admits another passerby in front of the microphone of Radio Europe 1. "Interest rates are very high, so we have put our plans on hold for the moment," complained a young woman who wanted to buy a home. "We said no, and that's impossible. To do that, we really need to win the lottery," adds another.

According to experts, without significant and rapid change, this situation could continue and intensify for the rest of the year.