La Réunion faces housing crisis amid social benefit freeze

La Réunion is facing a severe housing crisis characterized by high demand and a freeze on housing benefits. According to a report by the Association Régionale des Maîtres d’Ouvrage Sociaux et Aménageurs de l’Océan Indien (ARMOS-oi), there are currently 8.1 applications for every one social housing allocation. As of early 2026, the social housing stock comprises 24% of the island's primary residences, totaling 86,293 units, but production remains insufficient to meet growing needs.

Adding to this tension, the French government, through Minister of Housing Vincent Jeanbrun, has announced a freeze on Personal Housing Assistance (APL) for 2027 as part of a broader 54-billion-euro savings effort. Local leaders and advocacy groups, including the Comité DAL 974 and the Mayor of La Possession, Erick Fontaine, have denounced the decision. They argue that the freeze disproportionately affects the island's most vulnerable populations, noting that approximately 30% of the population relies on these benefits and 36.4% of residents live below the poverty line.