the rental market crisis is far from over

The increase in rents, the lack of turnover: where is the crisis of the rental market? BFMTV and BFM Business present the latest figures from the Clameur observatory, which is an authority in the analysis of rents.

For several months, the candidates for the rent are in trouble. The latest figures from the Clameur observatory show that the crisis is not yet behind us. On a national scale, the type of property that concentrates the most current tensions is the studio.

In general, over a year, rents increased by 3.98% for studios while for 2 rooms and more we oscillated more around 2% growth (+1.82% for 2 rooms and + 2, 19% for 3 rooms and more).

Prices rise sharply in the west

In detail, the observatory shows that the race to the west results in an increase in rent completely crazy on the Atlantic coast. An increase that is still focused in particular on the studios with in Vannes +12.19%, in Saint Nazaire +11.16%, in Lorient +8.07%, in Saint Malo +7.69% or even in La Rochelle +7.12%.

The attraction of the west, the “Atlantic Riviera”, dates back a few years. The temperatures are milder than on the French Riviera, so covid and telecommuting are speeding things up. Real estate purchases by metropolitan residents, especially Parisians, pushed up prices on the Atlantic coast. The prices became prohibitive for some of the premises, which in fact created a rental market where there really was none. The tensions are increasingly intense.

Tensions in very big city

On the side of the very big cities, the tension also remains. The increase in studio rents are certainly less spectacular than on the Atlantic coast, but in terms of value, the level of rent is such that the impact remains huge on tenants. We can mention Nice with +7.9%, Marseille with +5.62%, Lyon with +5.06% or even Paris with +3.02%.

How can the rents be increased so much? On paper, most rents cannot increase by such large amounts because there are safeguards in place. First of all, there is a rent control in about thirty cities in France with roofs to respect.

Next, we need to mention the support for the transfer. It limits the possible increase in the rent of the new tenant compared to the previous tenant. This framework is in force in the 28 largest cities and covers about half of the French population. In addition, there is the IRL, the rent reference index that everywhere limits the annual revaluation for existing tenants. Index established by decree. It normally follows inflation, but has been limited for a year and a half to 3.5% to protect tenants. And finally, there is no possible increase for housings F or G.

Logically then, the spectacular increase that we just talked about should not happen, so how can we explain it? We can cite the vacant houses put back on the market (unlikely), the housing whose rents were clearly underestimated (unlikely), the major works carried out that justify a catch-up (possible in particular with the obligations to renew the sieves ), processing an empty supply. rent (very likely) and finally non-compliance with the rules (very likely).

Fewer offers

Less and less offers and more and more requests. The supply of rental houses in France has fallen by almost 57% in 5 years, according to the advertising site Bien’ici. In Paris, supply has dropped by 51% in just 2 years. The local tax (property tax) or national and regulatory obligations, such as the renovation of the sieves tend to return the owners. They sell or switch to classic furnished rentals at best, or seasonal rentals at worst.

Demand continues to grow. In the 1st quarter, we saw an increase of almost 18% year on year. Despite the relaxation of loan conditions, many tenants have not been able to become owners. Therefore, they remain tenants. To them are added the students, who leave the cocoon of the family, and the cohabitations chosen or suffered as separations. Example of unprecedented tension that suggests that the next school year will be very difficult again: investment specialist Beanstock is still seen in the spring worthy of a month of September. A few weeks ago, he received 1,312 applications from tenants for an 18 m² studio in Lille rented for 500 euros per month.

Landlords are finding tenants faster and faster. Studios and 2 bedrooms stay on average less than two weeks on advertising sites before finding a tenant. We were more like twenty days 5 years ago. And tenants are staying longer and longer. The duration of the lease remains more than 5 years ago. We are now 2 years and 4 months in a studio, compared to just 2 years in 2018-2019.

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