After two years of marked decline, new construction is finally showing signs of recovery. According to a preliminary estimate published on Friday, January 30th by the Ministry of Housing and Urban Development, 379,222 building permits were granted for housing in 2025, representing a 15% increase compared to 2024. This rebound, however, remains incomplete: the level is still 8,8% below the average observed over the last five years.
The recovery is more modest on the construction front. The number of housing starts reached 274,611 for the year as a whole, a 5% increase year-on-year. But here again, the gap remains significant compared to the 2019-2024 reference period: housing starts are still 21,3% below the five-year average. The ministry also emphasizes that these figures are still provisional, as data collection for construction sites is only 65,7% complete.
Collective housing drives the momentum, individual homes remain stagnant
In detail, multi-family housing appears to be the main driver of this renewed activity. With 246,403 units authorized, it has almost returned to the average level of recent years. Conversely, single-family homes continue to plummet: 132,819 permits were issued, a very low level, 29,1% below the five-year average.
The Data and Statistical Studies Service (SDES) explains this contrast by a persistent decline in permits for ordinary multi-family housing, offset by strong growth in other types of residences (student, senior, tourist, etc.). A rebound was observed in December, however, with 32,381 units authorized (+6,9% month-on-month), but the ministry notes that the second half of the year remained less dynamic than the first.
This relative improvement comes in a still-challenging context: rising construction costs, high interest rates, a decline in rental investment, and the end of the Pinel scheme. The sector therefore remains far from pre-crisis levels, despite a slight improvement that could signal a gradual recovery.
