This is an article from Les Echos (source here) that you must read in 30 seconds to understand the aberration into which our successive governments are plunging us and that is starting to be enough.
On the one hand, crazy standards where you have to be able to turn a wheelchair on all floors, in all rooms, state-of-the-art insulation, elevators that never meet standards enough, etc., we end up with a construction cost prohibitive.
So the best is always the enemy of the good… We end up saying what if we housed people in caravans! Because a tiny house is just a Nice word to talk about bobo and more charming caravans, but caravans nonetheless.
Tiny houses, a solution explored to address the housing shortage
“Communities and social landlords are experimenting with villages of tiny houses for employees and students, particularly in areas where property prices are soaring.
Is the tiny house a solution to the housing shortage? Several communities are exploring this avenue even if the phenomenon remains marginal. One of the pioneers in this area is the town of Grand-Champ, 15 km from Vannes, which has reserved a former municipal campsite of 8,000 m2 to accommodate 21 tiny houses. This project is shared between mini-houses set up by the social landlord Morbihan Habitat and rented locations. The only condition for setting up: being an active person working in the employment area less than 100 km from Grand-Champ, which effectively excludes retirees and second homes.
Last September, Oryon, the economic development, planning, housing and construction agency of La Roche-sur-Yon, in Vendée, also inaugurated its first park of tiny houses. Six units have been set up on the outskirts of the city on undeveloped land which should accommodate a real estate project. This is also an experiment to facilitate access to housing in a very tense real estate market “especially in social housing”, underlines Françoise Raynaud, president of Oryon, who reports a delay of two years to access social housing.”
Shortage, rising rent prices!
Rental market crisis: getting worse and worse! title of the Point in this article (source here). And that makes sense.
What is rare is expensive.
The less housing available, the more expensive what is left.
This is undoubtedly why the government prohibits the rental of 600,000 homes that have become indecent overnight and by simple decree, with tenants suddenly finding that they are in accommodation where nothing is going well… all this is totally crazy economically as well as socially. The ecological transition, as legitimate as it may be, does not imply doing anything and anyhow.
“The plummeting supply of real estate for rent is leading to a surge in rents. This increase, particularly strong in the ten largest cities, is now higher than inflation.
The rental shortage is getting worse. After falling by 31.9% between October 2021 and October 2023, the supply of properties for rent has decreased again this year, certainly to a lesser extent but in a context where demand, even if it is reduced slightly, remains extremely strong (+ 45% since October 2021).”
“Blocked in their purchase plans, many tenants have been forced to remain rented, preventing the turnover of property. The stock cannot be replenished, even though it is at its lowest,” explains Alexandra Verlhiac, economist at the SeLoger group.
Domino effect
The fall in the supply of goods is widespread throughout the country. “It is now affecting cities that had escaped it, such as Lyon and Rennes. It is accelerating in other metropolises, such as Lille (– 14.2% over one year at the end of October 2024), but also in Montpellier, Strasbourg, Toulouse and Nice,” underlines Alexandra Verlhiac.
And the Point to add… “The very low level of supply automatically leads to an increase in rents. After an increase of 3.6% in 2023, it reached 4% over one year according to the SeLoger barometer. The increase is now higher than inflation. The acceleration is particularly strong in the ten largest cities in France: + 4.7%, compared to + 2.8% in October 2023. Same trend for the 50 largest cities with + 4.3%, compared to + 3. 3% a year ago.”
Between people no longer being able to buy because of rising rates, the lack of construction and the disappearance of real estate investors from the market, it's obviously a disaster for the number of properties available to rent.
Result ?
The best is always the enemy of the good.
As the accommodation must be perfect, well you will be accommodated in caravans because no one is anymore capable of building such accommodation in sufficient numbers.
We will have to return to more pragmatism.
Charles SANNAT
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