Housing starts rose sharply during the first five months of 2026, though this did not eliminate the sector’s persistent fragility.
According to the latest economic report from the French Building Federation, they show an increase of 36,4 % over the past year, driven by both the individual segment, which grew by 34,1 %, and the collective, up by 38,1 %.
However, this rebound should be viewed in context. On an annualized basis, construction stands at approximately 307,000 housing units started, or nearly 50,000 fewer than the average observed over the past forty years. The FFB thus points out that « New housing construction remains at a low level ».
The building permit are also rising, but at a more moderate pace, from 10,5 %. The trend is more pronounced in single-family homes, with an increase of 18,1 %, compared to just 6 % in the anthology.
Sales indicators also remain weak: sales of single-family homes in the open market are rising by only 5,8 %, while sales by developers are down by 1,8 % between the first quarters of 2025 and 2026.
The situation also remains a cause for concern in the renovation sector. Maintenance and improvement activity is down by 2,6 % in the first quarter of 2026, for the sixth consecutive quarter. The decline amounted to 3,4 % for energy-efficient renovations and 4,1 % in the only dwelling.
According to the Federation, the’« exceptional instability » financial assistance since 2024 «seems to have discouraged many households from undertaking such projects.».
In the overseas territories, trends appear to be mixed. Housing starts are up by 28,9 %, while the amount of non-residential floor space under construction fell by 23,7 %. However, these data remain aggregated and do not allow for a distinction to be made between the situations in each region.
Finally, employment continues to decline. Over the past year, the construction industry has lost 16,000 salaried positions and a little more than 5,000 temporary jobs, despite the creation of approximately 10,000 self-employed jobs. Since the first quarter of 2023, nearly 55,000 jobs have disappeared.
At the same time, business costs rose by 2,4 %, even though their prices have remained stable, putting further pressure on their margins and cash flow.
Source: French Building Federation, «Construction Industry Outlook—Construction, Renovation, Activity, and Employment in the Building and Public Works Sector,» July 10, 2026.