Resale market shows early signs of recovery

After years of instability, the resale housing market in France is showing early signs of recovery. Buyers are returning to the market, with demand rising by 1% year-on-year in September. However, this does not signal a return to pre-crisis conditions, as overall transactions are still down compared to the previous year.

Market dynamics remain unbalanced

Despite the increase in demand, the supply of properties for sale has grown by 9%, and prices continue to decline slightly, down 1.5% year-on-year. The average time to sell a home has reached 101 days, and overall transactions in the resale market remain 1.8% lower than in September 2025. These figures indicate a slow rebalancing but not a full recovery.

Buyers are more cautious and informed

French buyers are returning to the market, but with greater caution. They are evaluating factors beyond just the price of a property, including mortgage costs, renovation expenses, energy efficiency, taxes, and transportation. This shift is evident in the growing demand for apartments, which rose by 2.5% year-on-year, while demand for houses continues to decline.

Rental market faces its own challenges

The resale market’s partial recovery does not resolve the deeper housing crisis. France still lacks sufficient housing in areas with high demand, and the rental market is under strain. The rental supply has dropped by 15% over five years, according to the Ministry of Housing, and housing construction has slowed, with 9.5% fewer units authorized in the past year compared to the previous five-year average.

Regulation and taxation strain private landlords

Private landlords, who supply most of the rental housing, face growing challenges. New regulations, such as the ban on renting homes classified as G, which took effect in 2025, have increased the cost and complexity of maintaining rental properties. These rules aim to improve energy efficiency but also risk reducing the availability of rental housing.

Balancing renovation and housing needs

Renovating existing housing is essential, but it must not come at the expense of housing availability. The Jeanbrun program, designed to support housing renovation, is a step in the right direction but needs to be more attractive to private investors. The goal is to ensure that renovations and housing investment can coexist without driving up costs or reducing supply.

A long-term approach is needed

The housing crisis requires a long-term, stable policy rather than short-term fixes. Increasing housing production, facilitating homeownership, and renovating existing stock must be prioritized. Policies should also support private investors by providing clear rules, stable taxation, and a predictable regulatory environment to encourage investment in housing.

Housing is a foundation for broader stability

Housing is not just an economic issue—it affects employment, mobility, and purchasing power. The ultimate measure of success should not be transaction numbers or price trends but whether a French person can find a home that meets their needs and budget. Addressing this challenge is essential for the country’s long-term vitality.