France housing market shows wealth disparity and shifting buyer demographics

Economist Thomas Piketty has noted a paradox in the French economy, stating that while the nation has never been as wealthy in terms of annual production, wealth distribution remains a significant issue. This disparity is particularly evident in the real estate sector, where national wealth accumulation does not translate to easier access to property for many, especially younger households.

Data from Médicis Immobilier Neuf reveals a shift in the new-build market. The average age of first-time homebuyers using the Prêt à Taux Zéro (interest-free loan) dropped from 43 in 2023 to 38 in 2026. Additionally, there is a trend toward solo purchasing; joint purchases of new-build properties fell from 50 percent in 2023 to 37 percent in 2026.

The market has also seen a decline in investor activity following the expiration of the Loi Pinel tax scheme at the end of 2024. Investor participation in new-build sales dropped from nearly 50 percent in 2021 to approximately 20 percent by 2025. Consequently, primary residences now account for 85 percent of sales, with buyers increasingly prioritizing energy performance and long-term budget predictability.