Categories: Business

How much do you need to earn to hope to become an owner in 2024?

Owning an apartment is a dream for many people. But this ambition comes up against a difficult economic reality. Despite the slowdown in 2023, property prices continue to rise.

Unfortunately, if it’s not real estate prices that are rising, it’s interest rates on loans that are exploding!

In 2024, a substantial income is required to hope to purchase housing in France.

Property prices in Ile-de-France continue to rise

According to a study conducted between 2017 and 2023, The total annual salary required to buy a 40 m² apartment in Paris has increased by 45.66%.

So, if in 2017 you had to earn €78,225 per year to hope to become an owner, in 2023 this figure rises to €113,945.

This significant increase shows how difficult it is to access property in Ile-de-France.

Significant regional disparities

The previously mentioned study also highlights significant differences between Île-de-France and other French metropolises: Marseille, Lille or Bordeaux.

Sometimes, you have to earn three times as much to live in certain towns of Ile-de-France compared to Lille for an equivalent property and under the same conditions.

a A gross annual salary of €46,000 will allow you to buy a 44 m² apartment in Saint-DenisWhereas in Paris you would have to fork over €120,000 per year to even hope to buy a 40 m² house.

In France, to buy an 80 m² apartment, you must earn:

  • Nivre: Less than €30,000 per year.
  • Digging: Less than €30,000 per year.
  • Muse: Less than €30,000 per year.
  • Paris: Over €150,000 per annum.
  • Hots-de-scene: plus €150,000 per annum.

Access to credit, another major constraint

Even if you have the necessary income to buy housing in Ile-de-France, one major hurdle remains: access to real estate credit.

Due to inflation and rising interest rates, many French people are struggling to get a home loan.

On the one hand, this leads to a reduction in the production of new housing and a shortage of rental offers. On the other hand, low-income and vulnerable people may find themselves homeless.

Given the evolution of real estate prices in recent years, it is clear that the dream of becoming a homeowner in this region is becoming increasingly difficult to achieve.

High salary requirements and difficulties in obtaining credit are major obstacles for many families.

If no effective measures are taken to remedy this situation, it is likely that social and regional disparities will continue to grow.

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