5 times more municipalities are classified as stressed areas

Housing crisis: Government takes action again

As of March 22, 2024, a ray of hope has emerged as France goes through a major housing crisis. Bruno Le Maire (Minister of Economy and Finance) and Guillaume Kasbarian (Minister of Housing) announced the review of the ABC zoning (A, Abis, B1 and B2), from the Basque Country. The measure plans to reclassify more than 800 municipalities into tight zones, thus expanding the reach of assistance for the construction and acquisition of new housing. This new scope aims to provide a concrete response to the shortage of accessible housing, which is a major challenge for the government.

This initiative of the government opens the door to two main mechanisms: Zero-rate loans (PTZ) for new buildings, which were limited to areas classified in Zone A, A bis or B1 from January 1, 2024, and Intermediate Rental Housing (LLI), reserved for high-demand areas. The reclassification of 600 municipalities into tight areas promises to extend eligibility for PTZ to 1.8 million French people, and offer rental housing. 10 to 15% lower than market price. Thus, 200 other municipalities will see their stress level increase to stimulate the financial balance of real estate projects.

As of October 2023, 209 municipalities have already integrated into the system.

Before the publication of the final list in June 2024, prefects will begin consultation with local elected officials. This process will make it possible to adjust the zoning in the best way according to the realities on the ground. The government had already integrated 209 municipalities into the system in October 2023, for example Auxerre, Bourg-en-Bresse, Brest, Besancon and Strasbourg. As a reminder, The government wants to double the rate of intermediate housing production to build 75,000 in 3 years.

The challenge of this reform goes beyond simple administrative structures. This is a concrete measure that aims to improve the daily lives of 3.5 million French people.. By facilitating access to PTZ and doubling the production rate of intermediate rental housing, the government hopes to effectively respond to the housing crisis. These facilities, offered at moderate rents, represent a breath of fresh air for middle-class employees looking for affordable solutions in big cities. Hence the next publication of the list of reclassified municipalities is eagerly awaited.