French housing crisis and legislative response

France is addressing a significant housing crisis characterized by a widening gap between supply and demand. The social housing sector, despite holding 5.2 million units, faces increasing pressure; applications rose from 1.8 million to approximately 2.8 million over a decade. Wait times for housing have reached a national average of 19 months, extending to nearly 40 months in the Île-de-France region.

Financial challenges have emerged within the sector. A study by the Banque des Territoires indicates that social landlords are increasingly reliant on selling existing assets for investment capacity, as rental income contributes only 3.5% to self-financing. Landlords are also struggling to balance new construction with the renovation of existing buildings to address energy performance and extreme heat.

In response, Minister for Cities and Housing Vincent Jeanbrun has proposed a legislative project titled ‘Relance et décentralisation du logement’ (Housing Recovery and Decentralization). The plan aims to deliver 2 million new or rehabilitated homes by 2030 through a strategy of decentralization, renovation, simplification, and investment, intended to revitalize the rental market and empower local officials.