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by the Meilleurtaux Editorial Team
The shortage of rental housing is intensifying in France, aggravated by the difficulties of accessing property. This situation has led to a dramatic decrease in the number of rental listings in several cities, with declines exceeding -40% in one year. Focus on the situation and the cities most affected.
Factors contributing to the shortage
The market of’Rental investment is under increasing pressure, with a -9% drop in rental listings on SeLoger as of August 1, 2023, followed by a -24% reduction in the Laforêt real estate agency network over the last 12 months.
This decrease is largely attributable to the rise in interest rates, which hampers the borrowing capacity of households and complicates the purchase of real estate.
This trend is reflected in the market, with a -15% drop in national transactions within Laforêt agencies compared to September 2022.
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The impact on big cities
Important Large cities are particularly affected by this crisis. Between August 2022 and August 2023, rental supply fell on average by -23.2%, more than double the national decline.
Nice stands out with a -33.9% decrease in the number of rental advertisements in one year. The continued rise in real estate prices in this city makes purchasing even more difficult for renters, especially those on modest incomes. The city of Nice benefits from the presence of wealthy foreigners, second-time buyers and wealthy French retirees.
The situation in Paris is similar, with a -38.3% drop in the number of homes for rent in one year. However, it is in Rennes that the situation is most critical, with a -42.9% drop in rental supply in 12 months.. The city faces a shortage of rental housing, particularly for students, whose population has increased significantly in recent years.
Effects on rents
The mismatch between the purchasing capacity of households and real estate prices has an impact on rents, which increased by +3.1% in one year in Rennes. In Nice, Marseille and Strasbourg, the scarcity of supply has led to a significant increase in rents.
The situation is not expected to improve in the short term, as less favorable financing conditions disrupt the real estate sales market.
Rent capping or control measures are proving ineffective in resolving this growing crisis, highlighting the persistent challenges of the French real estate market.
- The shortage of rental housing is worsening in France, with declines of more than -40% in certain cities.
- High interest rates hinder the purchase of real estate, reducing rental supply by -9% on SeLoger and -24% at Laforêt.
- Large cities are suffering from the crisis, notably Nice (-33.9%) and Rennes (-42.9%).
- Rents are increasing, but regulatory measures remain ineffective.
- Uncertain financing conditions do not bode well for any improvement in the short term.
2023-10-16 11:06:05
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