If it takes 5.8 years of income to buy old housing in Ile-de-France, Burgundy, nearly 3.4 years is enough. Figures that resonate with inequalities in real estate purchasing power according to the territories even if the gap is narrowing a little between regions and the figure is falling in certain sectors, especially in Ile-de-France. Moreover, future buyers in Ile-de-France seem to feel this. Indeed, they say they are slightly more optimistic about the evolution of their purchasing power than buyers from other regions (21% of buyers in Ile-de-France think it will improve VS 18% nationally), even if the majority agree on the stability of their personal situation in the next 6 months (58%).
In Île-de-France, you become an owner faster than in 2019!
According to INSEE, 58% of French people are owners! And if this figure continues to increase, the number of years of income necessary to buy a main residence remains, for its part, generally stable. It even shows a slight decrease in the Paris region! Judge rather, on average, in Île-de-France, it is necessary to devote only 5.8 years of income (salaries, investment gains, rental income, allowances, retirement pensions, etc.) on the acquisition of its main residence in Île-de-France, compared to 6 in 2019 (Source: LPI-SeLoger Barometer – Housing Financing Observatory – CSA).
Buying takes twice as long in Paris than in Burgundy!
On average, if you mobilize all of your income, in France, 4 and a half years are enough to become homeowners in France. As a reminder, according to the LPI-SeLoger Barometer, the average price of a home is € 265,500. However, the number of years of income allocated to financing the purchase of a primary residence can vary almost from single to double depending on the region. So, while 3.4 years of income are sufficient to buy a home in Burgundy, it takes almost 6 in Île-de-France. It is also interesting to note that the coastal regions tend to be less accessible than the central regions.
In Aquitaine, it takes 5.6 years of income to buy a home
Overall, buying in France will have taken less time in 2020 (4.6 years of revenue in the former) than in 2019 (4.7 years in 2019). Paradoxically, most regions have seen an increase in the number of years of income required to purchase real estate. In the Midi-Pyrénées, count 4.7 years of income in 2020 against 4.1 in 2019 but like the Nord-Pas-de-Calais (3.8 years of income in 2019 vs. 3.6 in 2020) , in some territories, the duration has been reduced.
Outside the IDF, the prize for the region, where the purchase of a main residence requires more years of income than elsewhere, is awarded jointly to Aquitaine and Pays de la Loire where it is now necessary to accumulate 5.6 years of income when purchasing a home.
Price differentials that can be linked to wage differences
These disparities (5.8 years of income in IDF vs. 3.4 in Burgundy) can be explained by the differences (sometimes significant!) Not only but also in real estate prices between the French regions. So the regions where real estate is cheapest are also the regions where wages tend to be the lowest. ” In Île-de-France, the average income of buyers is 62% higher to that observed in Lorraine or Limousin … Also the price differences are attenuated when prices are compared to household income », Points out Michel Mouillart, spokesperson for the LPI-SeLoger barometer.