Weighing up costs of renting a home versus buying in france

RENT INCREASES AND PROPERTY PRICE DROPS MAKE IT BETTER TO PURCHASE IN SOME AREAS BUT SIGNIFICANT REGIONAL DIFFERENCES PERSIST It takes on average 14 years and eight months for a property

purchase to become more profitable than renting in France, leading to questions whether opting to buy is currently the right choice. In certain expensive and high-population cities it can

take significantly longer, adding yet another reason why many may be hesitant to purchase. A study undertaken by mortgage broker Meilleurtaux looked at the average cost of a 70m² property in

32 cities in France, either to rent or to buy. In addition it took into account the taxes and fees buyers must pay when purchasing a property. Taxe foncière must be paid every year plus

co-ownership payments are necessary if living in a block of flats.  The 0.5% increase in notaire fees expected in June 2025 is not accounted for in the study but will be an additional cost

for buyers in the future. Read more: Notaire fees expected to rise for home purchases in France The study compared these costs to those of renting, also taking into account the possible

returns if a renter invested additional buyer costs in a savings account to come to the final figure.  FIGURE SEES DROP It may seem a long period however 14 years and eight months is a

positive compared to recent figures. A similar study last year by the mortgage broker stated it took homeowners 15 years and six months for their choice to be more profitable – 2024’s result

is the first time the timespan for home ownership to become profitable has dropped in four years, after steady increases since 2020.  The average time for buying to become more profitable

than renting fell in 17 of the 32 cities reviewed. In Le Mans it fell by more than 10 years. A reduction in mortgage rates from a high of 4% at the end of last year is one of the factors

behind the results as was an increase in rental prices in a number of cities. The study does not take into account other factors that could influence a move or property purchase including

quality of life, safety and crime rates, job opportunities, etc. Read more: MAP: house price falls in France - see how your area fares in new notaire data LARGE REGIONAL DIFFERENCES  There

are significant differences between cities when arriving at the 14 years and eight months average figure.  This can be due to both rental costs and property prices fluctuating over the last

year.  Paris, as France’s most expensive city, has the highest wait-time for profitability at 29 years, followed by Aix (27 years) However, the next cities on the list in Bordeaux, Rennes,

and Caen (all at 22 years) have a purchase price per m² cheaper than the city in sixth spot, Nice (21.6 years).  In Caen’s case, the cost per m² are over €2,000 lower than in Nice but

relatively cheap rents of €13 per m² mean it is still more efficient to rent than buy for many. Certain cities such as Nice and Marseille have seen rents stabilise whilst purchase costs have

increased, making the time for a purchase to become profitable extend. Inversely, in towns where property prices are cheap, returns are naturally quicker.  In Mulhouse (Haut-Rhin) it takes

only 18 months for purchasing to become more efficient than renting as rent costs are near national averages (at €13 per m², the same as in Caen) but purchase costs are amongst the lowest in

the country, at €1,319 per m².  Rental costs in the city increased 7% compared to 2023, but the price per m² of a property dropped by nearly €400 in the same period. Le Mans, Limoges, and

Saint-Etienne all see it become cheaper to buy than rent within five years, and in the following cities purchase becomes profitable in under ten years:  Perpignan (6.6 years) Le Havre and

Nîmes (7.1 years)  Orléans (8.5 years) Brest (9 years) Metz (9.3 years) Information for other cities can be found in the study, linked at the beginning of the article. Read more: Property

slump eases in France but sellers still need to be patient