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But why is it becoming impossible to buy a new house ?

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While we are living in a pivotal period in history with a real ecological issue in the world of housing, new construction is completely losing ground.

In just a few months, the cost of new homes has exploded, finally repelling potential buyers who are now turning to housing that consumes more energy.

Catastrophic results

The builders of the Pôle Habitat of the French Building Federation have just published their results for the year, and the verdict is final. 39, this is the percentage of less sales that were made on the sale of individual houses.

This represents 58 000 transactions in 2023 while the year 2022 reported 98 000 sales. But so, how can we explain such a drop in sales when the French have never had such ambition to own an individual house ?

L' vice tightens

But why is it becoming impossible to buy a new house ?

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If you are currently looking for a home to buy, you are probably aware that the period is not ideal. With the current inflationary situation, the conditions for access to real estate credit are still steep, despite having a significant deposit.

Of course, the sudden rise in interest rates, from 1% in 2021 to an average of 4.5% currently obviously explains the difficulty the French have in becoming owners of their homes.

Despite this rise in rates, the existing real estate market did not experience as significant a drop as the new property market. So, how can we explain such a drop in the sale of new constructions ?

30 to 40% for nails

Among one of the most likely causes of this drop in sales in the new home market in addition to interest rates, there is the massive increase material costs.

Indeed, the war in Ukraine had the perverse effect of triggering a massive increase in the costs of construction materials. According to the general delegate of the housing division Christophe Boucaux, “the prices of materials have exploded by 30 to 40% between 2019 and 2023”.

With an increase in material costs automatically comes an increase in construction site costs, which of course is reflected in the selling price. The fact that building land in attractive areas is difficult to find doesn’t help either. Thus, buying a new detached house risks becoming ever more complicated in the years to come.

  • The builders of the Housing Unit of the French Building Federation have just published their results for the year
  • They report a a fall sales of single-family homes by 39%, going from 98,000 sales in 2022 to 58,000 sales in 2023.
  • We can explain this fall by the terrible increase in interest rates on real estate loans, as well as l& #8217;30 to 40% increase in construction materials.

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Teilor Stone

By Teilor Stone

Teilor Stone has been a reporter on the news desk since 2013. Before that she wrote about young adolescence and family dynamics for Styles and was the legal affairs correspondent for the Metro desk. Before joining Thesaxon , Teilor Stone worked as a staff writer at the Village Voice and a freelancer for Newsday, The Wall Street Journal, GQ and Mirabella. To get in touch, contact me through my teilor@nizhtimes.com 1-800-268-7116