Housing crisis, the great upheaval of the French rental market in 2024

The French rental market is going through a period of great tension, as highlighted in a press release issued on November 21, 2024 by Guy Hoquet. The latter tells us that between January and September 2024, the housing supply fell by 5.2% compared to the same period in 2023. Faced with constantly increasing demand and falling real estate rates, this reduction in supply highlights a structural imbalance, marked by significant regional disparities.

Borrowing rates noted on 11/25/2024

Contrasting regional dynamics

The analysis carried out by Guy Hoquet highlights three main market typologies.

• A relative resistance in the West : in Brittany (+1.3%) and Pays de la Loire (+1.2%), the rental supply is increasing slightly. These regions benefit from increased attractiveness thanks to their quality of life and favorable economic dynamics, but this improvement remains marginal in the face of growing demand.
• A marked decline in the East : regions like Hauts-de-France (-9.5%) and Provence-Alpes-Côte d’Azur (-6.4%) show alarming declines. These areas, often characterized by a high demand for empty housing, are bearing the brunt of the constraints weighing on this type of property.
• A more moderate decline in the rest of the country : in Occitanie (-4.6%) or New Aquitaine (-2.2%), supply is decreasing at a slower pace, but the gap between supply and demand continues to widen.

The reasons for these disparities are multiple. However, the press release states that the decline in new construction combined with a regulatory and tax framework deemed dissuasive for owners would play a central role. Moreover, the transition to furnished leasesmore financially attractive, accentuates the difficulties in the empty rental segment, which still constitutes the majority of the offer.

Furnished rentals on the rise

While empty rented property, representing 62% of total supplyshow a marked drop in supply of 11.7% in one year, furnished rentals increased by 7.7%. According to Guy Hoquet, this shift is explained by several advantages that furnished accommodation offers to owners: higher rents, more advantageous taxation, and increased contractual flexibility.

Certain regions of the West are recording spectacular progress in this segment. According to the figures in the press release, Brittany shows a 15.3% increase in furnished rentalsfollowed closely by Pays de la Loire (+12.5%) and Normandy (+11.8%). This dynamic is also observed in cities like Le Havre (+9.2%) or Angers (+5.8%), where the furnished supply helps to partly compensate for the overall deficit of available housing.

However, in areas like Île-de-France, where the supply of empty housing is collapsing (-19.3%), this increase in the furnished market remains insufficient to compensate for the losses. The organization of the 2024 Olympic Games has also accentuated these trends, increasing demand for well-located, temporary housing.

A general increase in rents throughout the territory

The housing shortage has a direct impact on rents, which are experiencing a general increase. On average, rents increased by 4% over one year, with notable differences between regions, again according to statistics from Guy Hoquet.

In Burgundy-Franche-Comté, rents remain among the most accessible at €10.8/m²while in Île-de-France, they peak at €25.6/m², the highest level in the country. This disparity reflects heterogeneous rental markets, where large metropolises concentrate most of the tensions.

Some cities particularly stand out for the magnitude of the increase. In Paris, rents increased by 7.7% in one year, followed by Nice (+6.6%) and Marseille (+6%). These increases are notably linked to the rise of furnished properties, whose rents per square meter often exceed those of empty accommodation by 20%.