Housing market and households wealth

Post n°302

Housing subsidies: a smaller upward impact on rents if supply adjusts

Published on 01/30/2023

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By Céline Grislain-Letrémy and Corentin Trevien (CREST-ENSAE)

We evaluate the long-term effect of housing subsidies on the price, quantity and quality of private rental accommodation in France. The overall upward effect on rents is accompanied by an increase in the total number of dwellings. These effects depend on the market segment. They have not proved long-lasting for small dwellings, which have increased in quantity.

Chart 1: Share of housing subsidies in French GDP
Chart 1: Share of housing subsidies in French GDP
Updated on 01/30/2023 08:29
Post n°256

Financial savings, debt and money holdings during the pandemic

Published on 02/11/2022

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By Louis Bê Duc

The increase in the money holdings by the non-financial sector in the euro area and the United States during the pandemic is explained by the strong increase in financial savings linked to public transfers and the sustained growth of loans, and in particular (in the euro area), government-guaranteed loans. Portfolio shifts strengthened the monetary dynamics in the United States, while they dampened them in the euro area.

Chart 1. Sources of change in money holdings by households in the euro area (Change in annual flows as a % of GDP)
Chart 1. Sources of change in money holdings by households in the euro area (Change in annual flows as a % of GDP) Source: Euro area sector accounts, ECB.
Updated on 02/25/2022 18:43
Post n°254

Working from home and corporate real estate

Published on 02/02/2022

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By Antonin Bergeaud, Jean-Benoît Eymeoud, Thomas Garcia and Dorian Henricot

Corporate real estate market participants are starting to adjust to the take-off of teleworking in France. We show that teleworking already has an impact on the office real estate market. In French départements more exposed to teleworking, the Covid-19 crisis has led to higher vacancy rates, less construction, and lower prices. Forward-looking indicators suggest that market participants are expecting a lasting shift towards teleworking.

Chart 1a: Teleworking index by département
Chart 1a: Teleworking index by département Source: Bergeaud et al., 2021
Updated on 02/03/2022 11:41
Post n°148

Changes in per capita property purchasing power in the euro area

Published on 01/17/2020

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By Antoine Lalliard, Julien Le Roux, Marie Delorme and William Honvo

This post proposes a measure of property purchasing power by calculating the floor area in m² that an individual with an average income could buy with a housing loan (excluding deposits) in some of the largest euro area countries. After declining sharply in the 2000s due to rising house prices (with the notable exception of Germany), affordable floor area has increased since the 2008 crisis, mainly thanks to lower interest rates.

Chart 1: Floor area affordable on credit in m² by country
Chart 1: Floor area affordable on credit in m² by country Sources: Authors’ calculations; Banque de France, OECD, ECB, HouseLev.
Updated on 02/14/2020 16:48
Post n°48

Stable borrowing capacity and dynamic real estate market in 2017

Published on 02/20/2018

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By Edouard Jousselin with Simon Ray

In 2017, the French real estate market continued its recovery. It was fueled by households’ borrowing capacity: household income increased and lending conditions remained favourable. This situation can be explained by low interest rates and long loan terms. After rising by 20% between 2014 and 2016, households’ borrowing capacity stabilised in 2017.

Chart 1: the real estate market recovery continued in 2017 - Year-on-year % change Sources: Insee-Notaires; Ministry of the Environment, Energy and the Sea
Updated on 02/20/2020 15:53

Housing: current recovery & lending conditions

Published on 08/11/2017

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By Simon Ray

The French real estate market has improved, in particular as a result of the very favourable lending conditions: the latter have increased households’ borrowing capacity. This capacity has grown by nearly 20% since 2014. This is chiefly thanks to lower interest rates followed by an increase in the duration of the loans, both related to an exceptionally accommodative monetary policy. A summary indicator helps measure this improved borrowing capacity.

Updated on 08/13/2019 10:53