Ostrum
  • News & Chronicles
  • France
  • Euro Area
  • United States
  • International
  • Politics & Society
  • Monetary Policy
  • Media
  • Decoding
  • About Philippe Waechter
Philippe Waechter's blog
  • Insights
  • About us
  • Expertise
  • Our people
  • Media

Philippe Waechter's blog
My french blog
  • News & Chronicles
  • France
  • Euro Area
  • United States
  • International
  • Politics & Society
  • Monetary Policy
  • Media
  • Decoding
  • About Philippe Waechter
  • News & Chronicles
  • France
  • Euro Area
  • United States
  • International
  • Politics & Society
  • Monetary Policy
  • Media
  • Decoding
Philippe Waechter's blog
Prévôté
Previous Next
  • 1 min

France – Housing Starts are back to 1998 level – Housing crisis

  • 24 June 2014
  • Philippe Waechter
  • Housing Starts
Total
0
Shares
0
0
0

The chart below shows housing starts in France since the beginning of 1995. The sum over 12 months is at 312 000 in May 2014 and can be compared to the level seen at the end of 1998.
This chart shows the housing problem in France. After a strong period in 2003 – 2007 and robust but unsustainable tax incentive period in 2010/2011, housing starts are back to their long-term trend (between 300 000 and 350 000 per year). This has to be compared to French population. Between January 1995 and May 2014 it has grown from 59 281 000 to 65 906 000. Between 1990 and 2010 the households’ number went from 21 942 000 to 27 715 000.
With these figures in mind, are you surprised by the housing crisis in France? Too many people, too many households for the number of new houses.
The target of 500 000 that was announced by the former Housing Ministry, Cécile Duflot, in 2013 is still too far from being reached.
Going a little deeper in the housing market, we see that there is still a strong demand  for large cities, in fact where there are jobs (Pars, Lyon, Toulouse, Lille and few others). But for these cities the land price is very expensive, so are houses. In other regions, the job momentum is weaker and demand is low. For at least for the last 40 government policies had a target in terms of geographical planning. It has been a failure and the result is this large imbalance on the housing market.
France-en-2014-May-HousingStarts

Related Topics
  • Housing Starts
On the same topic
  • 3 min

From Yesterday to Today – November 3 – France, its Public Deficit and the fragility of the Euro Area

  • 4 November 2020
  • France

Philippe Waechter

The IMF suggests that France should revive its economy but also should plan a strategy to rebalance its public finances as soon as activity picks up. Its fear is a…
  • Euro Area
  • Public Finance Sustainability
  • Sovereign Debt Crisis
  • Structural Deficit
READ
  • 3 min

From Yesterday to Today – October 30 – Spectacular rebound in growth while awaiting containment

  • 30 October 2020
  • Euro Area

Philippe Waechter

The GDP in France and in the Eurozone countries has clearly improved over the three Summer months. Nevertheless, the level of activity remains a little below 4% of the 2019…
  • GDP Growth
READ
  • 3 min

From Yesterday to Today – October 29 – What impact would the November lockdown have on activity in France?

  • 29 October 2020
  • France

Philippe Waechter

With a conservative assumption on the impact of containment of -6% in the last quarter, GDP would contract -10.8% in 2020 and grow by + 3.5% in 2021. Convergence towards 2019 GDP would take place around 2026/2027
  • Covid-19 Impact on Growth
  • Lockdown in France
  • Social Dynamics
READ
Subscribe to the newsletter

All the news from Philippe Waechter’s blog in your mailbox

Loading
ABOUT PHILIPPE WAECHTER

Ostrum's expert magazine

ABOUT OSTRUM AM
  • About us
  • Media room
  • Our publications
FOLLOW ME ON
EXTERNAL LINKS
  • Economists
  • Think tank
  • Central banks
  • Blog roll
©Ostrum AM 2019
An affiliate of : Plan de travail 2

Input your search keywords and press Enter.