French News Real Estate

One of the biggest economic variables in any nation is the cost of real estate for the average person. France has been hit with a lot of economic issues recently. With a new election, the French people are hoping that economic growth will be high again. For the average person living in France, a home is too expensive to buy right now. Wages have been stagnant for years, and demand for homes is increasing every year. A lot of investors are coming in and buying affordable homes before people have a chance to look at them. This is making the average home more expensive every year.

Wages

One of the biggest issues right now in France is that wages are stuck. For many years, wages increased at a rapid rate as the overall population became more productive. However, this is a trend that has reversed. Compared with the cost of living, the average person in France is now making less money than five years ago. If the economy is going to grow again, housing has to become more affordable.

Investing in Real Estate

There are many people in France who are starting to invest in real estate. Although this is a great way to make money over time, this is also increasing competition for starter homes in the country. Many young people are struggling with paying back school loans after graduation. They simply cannot afford to go out and buy new homes right now. The new leader of France has said that this is one of his biggest priorities. It will be interesting to see if real estate investing continues to expand at such a rapid rate in this country in the years ahead.

Future Plans for the Economy

France has a lot of plans for the economy to change for the better in the coming years. Not only is the country trying to reduce the cost of college, but they are encouraging more affordable housing for young people. The real estate market is so competitive in the country that many homes are selling within hours of going on the market. Young people are so frustrated by the process that they are dropping out of the housing market completely.

In the years ahead, these are all issues that will need to be addressed. Most people in France realize that the current trajectory is simply not sustainable with the rate of economic growth in the country.

Related: https://www.inman.com/2017/06/08/luxury-is-more-than-the-hamptons/

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