Is it getting harder and harder to acquire property?

Two studies published by Meilleurs Agents and Artmis Courtage show that in the face of declining property affordability, more French people are giving up being owners, while others are now excluded from acquiring property. Is the French pessimism about the property market justified?

Is real estate crazy? At the end of a special 2021 (1,178,000 transactions for the whole year, according to the Notaires-Insee index, the price of old buildings rose by 7.1%), are the prices now too high for families?

Lack of properties in attractive areas

One thing’s for sure, this isn’t new. Particulier Particulier director Corinne Joly confirmed that the price increase was not a recent phenomenon. The problem is that everyone wants the same thing. There are pools that everyone wants to be, and that inevitably drives up the price. It’s more of a question of attraction and regional development. We are not out of stock, but we are short of attractive areas. In my opinion, this is a basic theme.

APL, PTZ… Which presidential candidate wants to boost housing benefits?

Perspective of Erwann Tison, director of research at Institut Sapiens, and author of the report titled Tackling France’s Housing Problem, to be published in Economist Circle on April 14: The problem is not that we don’t build enough housing, but they don’t in the right place. There is a mismatch between housing and activity needs. In cities such as Rennes, Strasbourg, Lyon or Bordeaux, property prices have exploded, while in the rest of the region, 9% of homes are vacant. This is a matter of supply and demand rebalancing. The only way real estate prices can be lowered is by massive construction in the extended area, or by creating economic activity in the extended area.

The situation affects all households: real estate is becoming a bigger part of household income, supporting Erwann Tison. Effort rates, the percentage of spending directly allocated to housing, were around 16% in the early 2000s in the 2000s, and today we have around 25%, and sometimes as high as 33%, for young people and working-class people.

buyer’s brakes

A study by Meilleurs Agents published on March 24 found that in the 11 largest cities in France over the past five years, French real estate purchasing power is falling. Between March 2017 and March 2022, residents lost an average of 6 square meters of real estate purchasing power. Many of those surveyed subsequently found that rising property prices were the main barrier to getting a property.

According to research by Artemis Courtage, 43% of French (an increase of 5 percentage points compared to September 2021) explained that property prices are the most important barrier to buying. Faced with this situation, more and more French people now say they do not want to be homeowners (25%, an increase of 8 percentage points compared to September 2021). Ludovic Huzieux, co-founder of Artmis Courtage, explained that the French are already concerned about their purchasing power, they are concerned about the surge in already high property prices, and the increased difficulty in accessing property credit.

Real estate prices, rents, buying… 5 effects of the war in Ukraine on real estate

Young people under the age of 35 are particularly affected by this pessimism about the real estate market situation (62%). This should come as no surprise to individuals who find it harder to get a real estate loan today. Economist Michel Mouillart recalls that for two years, the Banque de France gradually tightened credit channels, thus changing the types of customers.

complicated situation

Erwann Tison confirmed a transaction. According to him, the age of acquiring property is getting later. According to Artemis Courtage: If 32% of first-time homebuyers aged 30 to 34 were Artemis Courtage customers in 2020, they will only be 25% in 2021.

retire: Save by paying less tax. 11 contracts compared

Michel Mouillart believes that, at least until 2019, the individual contribution required is very low. Getting credit is much easier. But in 2020, we see that contribution rise. And this trend is confirmed in 2021. While the 10% contribution rule is sometimes brought forward, the reality is slightly different. At the end of 2019, an average of 15% of the credit file for the purchase of an older primary residence was. By the end of 2021, that figure rose to 18.5%, according to the Crdit Logement-CSA Observatory.

This effectively excludes households with lower individual contributions. However, Erwann Tison points out that from a banking perspective, France is one of the easiest countries to obtain housing, with very low interest rates and long maturities. But more and more people are excluded from this possibility because they do not have the necessary contributions or the necessary guarantees.

Real estate credit: should we hurry to renegotiate?

However, Ludovic Huzieux, co-founder of Artemis Courtage, tempered these assertions: Rates are rising, but the rest is unchanged from September 2021. Banking institutions’ perceptions of risk remain unchanged. Banks behave the same way, they don’t explain borrowers who need 10% more contributions or higher income.

Still, things could get complicated in the coming weeks. A lack of materials and energy prices could lead to soaring prices for new homes and renovations, as well as lower wear and tear rates and higher mortgage rates. Many brokers are concerned about the scissors effect, warning that more and more families are unable to access property. Under these circumstances, there is no certainty that French morale on the issue will return to good shape immediately.

Find the best real estate prices

Leave a Comment

%d bloggers like this: