France is launching an ambitious “Housing Recovery” plan to build 2 million homes by 2030, or 400,000 per year, including 125,000 social housing units, in response to a housing crisis deemed a national emergency. Presented on January 23, 2026, by Prime Minister Sébastien Lecornu, this program aims to revive construction and renovation by mobilizing private savings and increased public funds.
Specific Targets and a Tight Timeline
The plan targets an unprecedented production rate: 400,000 homes annually starting in 2026, divided between social housing (125,000 units) and private rentals (an additional 50,000). It also includes the conversion of commercial buildings into residential units and the energy-efficient renovation of poorly rated properties (F and G).
- Social: €500 million in additional funding for 700 landlords, included in the 2026 budget.
- Private: A new tax incentive, the successor to the Pinel scheme, is open to all without zoning restrictions, with capped rents.
- Target: Milestones set for 2026 to address the rental shortage and rent increases.
Mobilizing savings and simplifying regulations
To boost rental investment, an attractive tax depreciation scheme targets new and existing properties (renovated to ≥30% of their value), potentially generating €500 million in net tax revenue. The government is simplifying urban planning: emergency building zones are entrusted to mayors, permits are being expedited, and protection against rent defaults is being implemented to secure landlords.
Context: A Structural Crisis
Housing production has fallen sharply (200,000 units/year vs. the 400,000 needed), increasing the burden of rent on household budgets and hindering professional and educational mobility. Lecornu compares the effort to Notre-Dame Cathedral or the Olympic Games: “don’t inconvenience the French,” by combining social and private, rural and urban areas without ideological conflicts.
Prospects and Challenges
This “radical plan” relies on abundant savings to produce affordable housing, but depends on stakeholder buy-in and rapid implementation in the face of local constraints (urban planning, land use). Expected success: bringing vacant housing back onto the market and boosting the economy through construction and renovation projects.
By aiming for 2 million homes, France is betting on a construction shock to curb its housing crisis, with an unprecedented public/private balance by 2026.
