Monday, April 22, 2013

High Price of Housing Hurts French Competitiveness

Housing costs in France are high, especially relative to Germany, and this housing inflation, through its effect on wages and salaries, hurts French competitiveness, according to this piece in Le Monde.

1 comment:

FrédéricLN said...

Yes, for sure. But on the other hand, the high, and comparatively growing, "perceived value" (price) of our real estate property should be considered an asset. ( http://demsf.free.fr/index.php?post/2011/08/03/Les-finances-de-la-France )

Already, it's the counterpart of our public debt: the lenders know we can pay back by giving them Paris and Courchevel, if needed.

I think the key issue for a new growth in France is: how to convert that capital into flows of added value?

That change is on the way, of course: employment in the building sector is now equal to one half of industrial employment (1.5 vs 3.0 million jobs); in 1995, the industry had more than 3 times more jobs (around 3.7 vs 1.2).