The Lyon Metropolitan Area is experiencing a worsening housing crisis, with annual housing needs reaching over 11,000 units, according to the FPI Région Lyonnaise. Recent data from August 2026 shows a 15 percent drop in individual housing reservations, with just 969 units booked for 2026, down from the previous year. Bulk sales to social housing providers have also declined sharply, falling by 45 percent to 152 units in 2026, compared to 278 units in 2025. New housing projects have also slowed, with a 13 percent decrease in new launches to 1,138 units. While the total number of available homes has increased by 9 percent to 2,865 units, the number of completed but unsold homes remains at 312 units. Prices in the private housing market have dropped by 4.1 percent, averaging 5,345 euros per square meter. However, the situation differs across the region. In the city of Lyon itself, reservations have fallen by 32 percent, with 205 units booked at 6,217 euros per square meter. In Villeurbanne, sales have decreased by 13 percent, with 139 units sold at 5,239 euros per square meter. In contrast, the suburbs have seen a slight increase in reservations, with 505 units booked—a 2 percent rise—and a 64 percent increase in new listings to 770 units. Prices in the suburbs have remained stable at 4,065 euros per square meter. The gap between the number of homes being built and the number needed is growing. According to the Trajectoire Logements 2050 study by CERC AURA, the region needs 11,000 housing units annually until 2040, but this target has not been met in recent years. In 2025, only 3,575 building permits were issued for multi-family housing, and this number dropped further to 1,801 in 2026. The average time to process a permit is now 12.4 months, slowing the development pace. Meanwhile, the average household size has decreased from 2.17 people in 2015 to 2.09 today, creating an ongoing need for 1,700 additional homes per year. Single-person households are expected to make up the majority of homes in the region, already 52 percent in Lyon, according to INSEE. The housing crisis is also affecting the 228,000 students in the Lyon academy, of whom 88 percent live in private rental housing. Due to the lack of available housing, 12 to 17 percent of students may consider leaving their studies. In response, housing developers are calling for changes to urban planning regulations. The FPI Région Lyonnaise is pushing for a simplified revision of the PLU-H, which would ease restrictions on social housing mixity and minimum surface area requirements. In the area of social housing, the industry highlights the Solidarity Lease (BRS), noting that the current income cap—set at 70 percent of the PSLA level—excludes 30 percent of households who could qualify under the national plan. Bérengère Bouvier, president of the FPI Région Lyonnaise, has stressed the urgency of reintroducing housing projects that meet current needs. Developers are also advocating for the continuation of the Zero Interest Rate Loan (PTZ) and the renewal of exemptions on family donations to help ease the crisis.