Seniors are deserting “Thermal Strainers” to make way for younger buyers
Faced with new energy regulations, a phenomenon of massive sales of poorly performing properties by seniors is shaking the real estate market, attracting young buyers motivated by affordable prices and prospects of renovation.
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Regulatory context and real estate impact
Next January 1 will mark a turning point in the French rental market with the exclusion of housing classified G in the energy performance diagnosis (DPE) from the rental market, in accordance with the climate and resilience law of August 2021. This measure will be followed by the exclusion of categories F in 2028 and E in 2034, pushing many homeowners to rethink their real estate strategy.
Landlords' reaction to the new laws
The legislative change created a particular pressure on homeowners the least efficient. The latter, often aged over 60, represent 69% of sellers of properties labeled F and G. This trend is explained by the desire to get rid of properties that have become difficult to rent and potentially costly to renovate to meet new requirements. .
The thermal strainer sales market
Since the start of 2022, sales of poorly performing homes have continually declined. In the third quarter of 2024, these assets represented only 13% of transactionsa drop from 15% the previous year. This trend is illustrated by greater awareness of energy performance and financial incentives for renovation work.
Attractions for young buyers
Young people, often faced with stricter budgetary constraintsare turning to these less expensive properties which offer interesting negotiation possibilities. Banks, aware of this dynamic, are now more inclined to finance energy renovation projects, which makes these particularly attractive homes for first-time buyers.
A generational change
The transfer of this real estate from seniors to young people is not only a market phenomenon but also a transfer of challenges and of opportunities. This reflects a generational shift in property ownership, where young people are taking over to transform properties once considered unattractive into modern, energy-efficient homes.
Future prospects
This market development has a double advantage: it allows seniors to liquidate assets that have become less profitable while offering younger generations opportunities to access property in a tense market context. Additionally, it boosts the renovation sector, which is essential to meeting national climate goals.
Social and economic impact
The implications of this change will beyond real estate ; they also affect social cohesion and urban planning. By renovating and rehabilitating these “thermal sieves”, younger generations are helping to revitalize entire neighborhoods, thus promoting a better quality of life and a significant reduction in the carbon footprint of urban areas.
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This article examines the phenomenon of underperforming real estate sales by seniors, highlighting how these transactions influence the real estate market and facilitate a transition to more sustainable housing. This cycle offers mutual benefits for sellers and buyers, while contributing to the collective effort to reduce greenhouse gas emissions.
Source: The Tribune
