Uncover the trends of 42-year-old buyers earning €5,900/month and their resurgence in the France’s real estate market. Who are they?
The France’s real estate market is witnessing a notable resurgence of second-time buyers, a demographic that had been largely overlooked during the housing crisis. As the market stabilizes, these buyers are beginning to re-enter the scene, driven by various factors that reflect both the challenges and opportunities present in today’s economic landscape. What are the profile of these second-time buyers, the dynamics of the current market, and the implications for both buyers and sellers.
The Resurgence of Second-Time Buyers
Historically, second-time buyers have played a crucial role in the real estate market. They are the individuals or households who sell their existing properties to purchase new ones, thereby facilitating the entry of first-time buyers into the market. The term “second-time buyer” encompasses a wide range of individuals, from those seeking to upgrade their living conditions to those looking for investment opportunities.
Recent data from Empruntis, a leading mortgage broker, indicates a significant uptick in the number of second-time buyers, with a reported increase of 59% in the first quarter of 2025 compared to the previous year. However, it is essential to note that this figure still represents a decline of 33% compared to 2022, indicating that while there is a recovery, it is far from a return to pre-crisis levels.
The Importance of Second-Time Buyers
Second-time buyers are often referred to as the “key” to the real estate market. Their transactions create a ripple effect, enabling first-time buyers to enter the market. The relationship between second-time and first-time buyers is symbiotic; without the former, the latter struggle to find suitable properties. The current market dynamics underscore this interdependence, as the resurgence of second-time buyers is closely linked to the activity of first-time buyers.
Who Are Today’s Second-Time Buyers?
The profile of the modern second-time buyer has evolved significantly since the onset of the housing crisis. According to Empruntis, the average age of second-time buyers has decreased from 45 years in 2022 to 42 years in the first quarter of 2025. Additionally, their average monthly income has risen from 5,500 euros to 5,900 euros, and their average deposit has increased from 61,000 euros to 67,000 euros. However, their purchasing budget has decreased from 425,000 euros to 391,000 euros, reflecting the impact of rising interest rates and falling property prices on their purchasing power.
The Financial Landscape
The financial landscape for second-time buyers today is markedly different from that of their predecessors. Many of these buyers are younger and more affluent than before, yet they face the challenge of reduced budgets due to the current economic climate. The rise in interest rates has significantly impacted their purchasing power, making it more challenging to secure desirable properties.
Moreover, many potential second-time buyers are feeling the pinch of market downturns, particularly those who purchased homes shortly after the COVID-19 pandemic when prices were at their peak. For instance, a couple who bought a house for 830,000 euros in 2021 now finds its estimated value at 720,000 euros, a 13% decline in just four years. Such scenarios are not uncommon, leading many homeowners to opt for renting out their properties rather than selling at a loss.
The Forgotten Demographic
Despite their importance, second-time buyers have often been overlooked in discussions about housing policy and financial support. While first-time buyers benefit from zero-interest loans and various subsidies, second-time buyers face increased notary fees and limited financial assistance. This disparity has left many second-time buyers feeling marginalized in a market that seems to favor newcomers.
Strategies for Second-Time Buyers
For those navigating the current market, several strategies can enhance their chances of success. First and foremost, it is crucial for second-time buyers to present a strong financial profile to lenders. This includes demonstrating a solid credit history, professional stability, and a higher budget than that of first-time buyers. The average budget for first-time buyers stands at approximately 268,000 euros, while second-time buyers average around 391,000 euros, making them more appealing to banks.
Additionally, potential second-time buyers should be prepared to negotiate with sellers. Given the current market conditions, many sellers may be willing to accept lower offers, allowing buyers to secure properties at more favorable prices. Furthermore, those with supportive family members may benefit from temporary measures that allow for tax-exempt donations to assist with home purchases.
The Market Outlook
As the real estate market continues to evolve, second-time buyers are advised to approach their decisions with caution. For those who purchased properties at the height of the market, it may be prudent to hold onto their investments a little longer, especially considering that the average holding period for a property is typically around 7-8 years. Making strategic improvements to their homes can also enhance their resale value in the future.
In cases where moving is unavoidable, renting out existing properties instead of selling at a loss can be a viable option. This strategy allows homeowners to maintain their investment while seeking new opportunities in the market.
The resurgence of second-time buyers in the France’s real estate market marks a significant shift in the landscape, offering hope for a more balanced and dynamic market. While challenges remain, particularly in terms of financial support and market conditions, the return of these buyers is a positive sign for the overall health of the real estate sector. As the market stabilizes, both second-time and first-time buyers must navigate the complexities of the current environment with informed strategies and a keen understanding of their financial positions. The interplay between these two groups will ultimately shape the future of real estate in France, making it essential for all stakeholders to remain engaged and adaptable in this evolving landscape.
