The price of housing in France

This short video from the series "Draw me the economy" aims to explain the variations in house prices in France since 1997.

Why do changes in the population and society play a role? What is the effect of interest rates? Of the cost of construction? Why do we not manage to build enough new housing? The video provides a synthetic answer to these questions often asked by buyers and sellers, tenants and landlords, as well as, more generally, all citizens interested in this important sector of economic activity and of daily life.

Source: Draw me the economy, in partnership with Le Monde and the Cité de l’Economie et de la Monnaie.

Objectives: To become better acquainted with several factors that affect the price of housing. The video start by presenting price developments since 1997: a rise up until 2010, a more uncertain trend since then. It then details the factors that affect housing demand: interest rates, demography, family structures, expectations, etc. Housing supply is then looked at: the cost of raw materials, the impact of construction standards, etc. Geographical aspects are discussed: Ile-de-France / regional disparities and urban / suburban / rural ones. Differences between purchase prices and rents are also addressed.

Audience: 12 +

Length: 3’03

To find out more and watch the other videos from the Draw me the economy series Dessine-moi l’éco

 

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Published on 20 October 2014.