(AOF) – Faced with growing demand in tense areas and more recently in medium-sized towns, the insufficient creation of new housing maintains a shortage which itself leads to an inevitable rise in selling prices, observes AFIL (Association Française rental property). This price increase is mainly reflected in the market for the old, which represents the overwhelming majority of transactions, deciphers the association whose mission is to represent and defend the ecosystem of rental real estate.
In 20 years, the prices of new properties have increased by 117% and those of old properties by 137%. Today, housing accounts for more than 26% of household final consumption expenditure.
“There are many reasons for the rise in new home prices: increase in land prices (too rare), concentration of players in the most tense areas, inflation of materials, energy, implementation of new energy standards, longer lead times for setting up operations… For the old one, the price increase is only justified by an imbalance between supply and demand,” explains Renaud Cormier, President of AFIL.
Rising prices have made home ownership increasingly difficult for the French. While the overall homeownership rate remains stable at 57%, this masks the fact that it is above all the richest 30% who see the homeownership rate increase (from 70% in 1984 to 84% in 2013), while it is falling in the poorest categories.
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