A Hexaom study reveals that the average age of new home buyers in France is 41.5 years, with most being in relationships. Explore the findings.
The France’s real estate market has always been a dynamic landscape, shaped by various economic factors, demographic shifts, and evolving consumer preferences. As we move into 2024, the profile of new home buyers in France reveals intriguing trends that reflect both the challenges and opportunities within the sector. According to a recent study by the Hexaom group, the average age of new home buyers is 41.5 years, with a significant majority being couples. Despite the hurdles faced by the construction sector in 2024, many French citizens continue to invest in new homes, indicating a resilient demand for housing.
The Profile of New Home Buyers
Age and Relationship Status
The Hexaom study highlights that the average age of new home buyers in France is 41.5 years. Notably, 75.5% of these buyers are in relationships, underscoring the trend of couples purchasing homes together. Interestingly, one in four buyers is under the age of 30, while 45% fall within the 28 to 42 age bracket. This demographic insight suggests that younger generations are increasingly entering the housing market, albeit with some challenges.
First-Time Buyers vs. Investors
In 2024, first-time buyers constituted 54.7% of the market, although this figure has seen a decline of seven points compared to previous years. This decrease can be attributed to the abolition of the Prêt à Taux Zéro (PTZ), a zero-interest loan program that previously supported many first-time buyers. Conversely, the percentage of investors has risen to 6%, marking an increase of 3.6 points. This shift indicates that while first-time buyers face more obstacles, investors are recognizing the potential of real estate as a viable response to the ongoing shortage of rental housing.
The Impact of Economic Factors
The Construction Sector in 2024
The year 2024 has been described as catastrophic for the construction sector in France. Despite these challenges, the demand for new homes persists. The Hexaom report indicates that 46% of new houses are being built in coastal departments, driven by the return of the zero-interest loan for single-family homes across the country. This initiative is expected to provide a significant boost for first-time buyers, particularly in both tense and relaxed areas.
Financing and Home Loans
Home ownership in France heavily relies on real estate loans, with 76% of Hexaom’s customers securing a home loan. The average loan amount stands at €230,000, with a repayment period of 21.5 years and an average deposit of €56,000. Despite the end of the PTZ in 2024, 22.5% of Hexaom’s customers managed to benefit from it, receiving an average amount of €62,900. This is a notable decrease from 33% in 2023, reflecting the tightening of financial support for first-time buyers.
Geographic Trends in Home Buying
Zones of Construction
The geographical distribution of new home construction reveals significant insights into buyer preferences. Approximately 64% of houses are built in zones A, B1, and B2, which are characterized by higher demand and urban development. In contrast, 36% of homes are constructed in zone C, a figure that has decreased by five points following the abolition of the PTZ. This trend underscores the impact of financial policies on where buyers choose to invest.
Proximity to Current Residences
Interestingly, nearly 89% of buyers opt for homes built within 18 kilometers of their current residence, with one in five purchasing in their hometown. This preference for proximity suggests that many buyers prioritize convenience and familiarity when making significant investments in real estate.
Budget Considerations
Increasing Construction Budgets
The average budget allocated for new home construction has risen by 10% compared to 2023, reaching €318,000, which includes land costs but excludes notary fees and ancillary expenses. Despite this increase, the average living area remains stable at 106 square meters. This rise in budget reflects the ongoing inflationary pressures in the construction sector and the increasing costs associated with land acquisition and building materials.
The France’s real estate market is navigating a complex landscape as we enter 2024. While the average age of new home buyers is 41.5 years, and the majority are couples, the market is witnessing a notable shift in demographics and buyer behavior. First-time buyers are facing challenges due to the abolition of the PTZ, yet the resilience of the market is evident as many continue to invest in new homes.
The trends highlighted in the Hexaom study provide valuable insights for stakeholders in the real estate sector, from builders to investors. Understanding the evolving profile of new home buyers, their financing options, and geographic preferences will be crucial for adapting to the changing market dynamics. As the construction sector seeks to recover from its recent setbacks, the potential for growth remains, particularly with initiatives aimed at supporting first-time buyers and addressing the ongoing housing shortage in France.
