Why is new construction slowing down in Brittany despite growing demand?

Brittany, a dynamic and attractive region, is experiencing sustained demand for new housing. However, recent data reveals a significant slowdown in new construction. This paradox raises questions about the factors holding back supply, despite a clear need.

A sharp decline in housing starts in Brittany

Authorized housing construction by department

According to data from INSEE, housing starts in Brittany fell by 25.6% in 2023, dropping to 20,700 units. Building permits also followed this trend, falling by 20.6% to 24,300 homes. This trend is in line with the equally poor national situation, but remains a cause for concern given the high demand for housing in the region.

The causes of the slowdown

High cost of materials and labor

Rising prices for construction materials and labor costs are weighing on project profitability. Construction companies, faced with reduced margins, are less inclined to launch new projects.

Administrative complexity

Complex administrative procedures and delays in obtaining building permits discourage investors and lengthen project development cycles.

Economic fluctuations

Economic uncertainties, such as interest rate fluctuations and inflation concerns, are causing real estate developers to exercise greater caution.

Consequences for the real estate market

This slowdown in new construction is putting increased pressure on the existing market, with limited supply facing growing demand. Prices for existing homes are rising, making home ownership more difficult for part of the population.

Outlook and solutions

To revive new construction, it is essential to simplify administrative procedures, encourage training in the construction sector to address labor shortages, and introduce tax incentives for investors. Greater collaboration between public and private actors is also crucial to stimulate housing supply.

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In conclusion, the slowdown in new construction in Brittany, despite sustained demand, is the result of complex economic and administrative factors. Concerted action is needed to overcome these obstacles and effectively meet the housing needs of the Breton population.