Each month records a new collapse in building permits issued (authorized housing). The number of building permits continued to decline in March in France, reaching a historic low since at least 2015, according to provisional data published Tuesday by the Ministry of Ecological Transition.
Between April 2023 and March 2024, 358,600 housing units were authorized for construction, or 19.8% less than in the previous 12 months. New construction is caught in a serious crisis. In detail, individual houses were the subject of 129,200 authorizations (-22.2%), while collective housing obtained 229,300 (-18.4%). Within collective housing, residences (students, seniors, etc.) are doing somewhat well with a drop of “only” 8.8%.
The number of construction sites started, which traditionally follows that of building permits, also continues to plunge, with 283,200 construction starts between April 2023 and March 2024, a drop of 23.3%, a historically low number. The ministry warns, however, that this last figure is more questionable due to a more fragmented collection of data on construction starts.
Towards a loss of 90,000 jobs?
Construction costs have increased significantly due to more expensive materials and stricter environmental standards. At the same time, buyers suffered from the rise in interest rates and the reduction in public support schemes for new real estate. This is starting to have effects on employment, with several promoters having announced social plans while smaller players are filing for bankruptcy. The French Building Federation fears 90,000 job cuts by the end of 2024 then 150,000 in mid-2025.
Hauts-de-France and Brittany are doing a little better than the other regions of France, with drops of 4.8% and 8.7% respectively. The most tense regions, Île-de-France and Provence-Alpes-Côte d’Azur, experienced significant drops in permits issued with -26.1% and -28.8% respectively. Remember that the number of building permits fell by 23.7% in 2023 compared to 2022 with 373,100 authorizations issued. Either nearly 116,000 fewer permitsissued throughout the year.