Explore the alarming housing shortage in France, as prices soar and citizens face daily challenges amid widespread calls for action.

In the midst of a housing crisis that has become a veritable Gordian knot, the French populace finds itself grappling with an alarming scarcity of available housing units, compounded by persistently exorbitant prices. This conundrum has elicited denunciations from a diverse array of stakeholders, including professionals, advocacy groups, and institutional actors, all of whom underscore the tangible repercussions this crisis has on the daily lives of millions of citizens, as illuminated by recent reports.

The Economic, Social and Environmental Council (EESC) has shed light on this pressing issue in its report on the state of France for 2024, released at the end of October. The findings reveal a stark reality: despite a deceleration in inflation, citizens are facing significant financial hardships. A survey conducted by Ipsos for the EESC indicates that a staggering “45% of French people believe that their purchasing power only allows them to meet their essential needs, or even does not allow it,” marking a three-point increase from 2023. Among the myriad sources of inequality identified, access to housing emerges as the foremost concern, surpassing issues related to health, employment, and public services. Notably, 58% of respondents report difficulties in securing adequate housing, whether through purchasing, renting, or social housing avenues—a figure that escalates to an alarming 84% in the overseas departments and regions.

The sentiments expressed by respondents resonate with the assessments of specialists in the field. A report from the Senate’s Economic Affairs Committee, published in April 2024, delineates five conspicuous symptoms of the housing crisis. Foremost among these is the precipitous decline in new construction, which has plummeted by 20 to 30% compared to 2022, while transactions involving existing properties have experienced a 22% decrease over the past year. This downturn is hardly surprising, given that credit production has contracted by more than half within the span of 18 months. Consequently, long-term rental offers have dwindled by 36% over two years, with an even more staggering 74% drop in Paris over three years, as reported by Seloger.com in February. The social housing sector is not immune to this stagnation, as evidenced by the 2.6 million applicants (including 1.7 million first-time applicants) vying for a mere 82,000 new approvals in 2023.

Moreover, the specter of inadequate housing looms large. The 2023 barometer from the Abbé Pierre Foundation reveals that over 4 million individuals are living in substandard conditions, with more than 1 million lacking stable housing altogether. A report from the Senate’s delegation for women’s rights, released in early October, highlights a troubling trend: the number of homeless individuals has doubled over the past decade, now totaling 330,000, with women comprising 120,000 of this figure—a stark increase from approximately 50,000 in 2012.

The EESC report further elucidates the ramifications of the housing crisis, referencing a 2021 Senate information report that noted a staggering 88% increase in property prices over the past 20 years. This trend not only exacerbates household impoverishment but also complicates the equilibrium of social and intermediate rental housing programs. The recent uptick in interest rates has only served to exacerbate these challenges, with the EESC noting that “the purchasing capacity of prospective homeowners has fallen by 30%.”

Even for those fortunate enough to have a roof over their heads, the financial strain remains palpable. The proportion of household budgets allocated to housing has surged from 19.7% in 2017 to 26.7% in 2022, according to INSEE. For the lowest-income quartile, housing expenses can consume up to 32% of their income. Energy costs, too, have contributed significantly to this burden, with energy expenditures related to housing rising by 7.8% in constant euros in 2021 alone.

The EESC also highlights the implications of the 2021 reform of personal housing assistance (APL), which altered the frequency of allowance revisions from annually to quarterly, resulting in a reduction of €73 for 29.6% of beneficiaries. Overall, housing benefits accounted for a mere 1.5% of GDP in 2022, a decline from 2% in 2008.

In light of these alarming statistics, professionals, advocacy groups, and analysts are united in their call for a comprehensive policy overhaul aimed at revitalizing the housing sector in France. The urgency of this matter cannot be overstated, as the fabric of society hangs in the balance, tethered precariously to the availability of decent housing.