Lyon, June 29, 2026 – The housing crisis in the Auvergne-Rhône-Alpes region, particularly in Lyon, is escalating dramatically, with a recent report from the Housing Foundation highlighting a severe shortage of affordable housing and a significant increase in homelessness. The report reveals that 24,000 individuals are currently without housing in the Métropole de Lyon.
New Housing Production Collapses, Demand for Social Housing Soars
According to the Housing Foundation, the production of new housing has “collapsed,” leading to a nearly 25% drop in the supply of very affordable social housing between 2019 and 2025. Over the same period, the number of social housing applicants has increased by 36%, while housing allocations have decreased by 12%. Across the region, 298,000 households are awaiting social housing, with 84,000 of them waiting for over two years.
This critical imbalance between supply and demand is a major contributor to the worsening housing situation, making it increasingly difficult for low-income households to find suitable accommodation.
Lyon Among France’s Most Expensive Cities for New Apartments
Adding to the crisis, Lyon has been identified as the third most expensive city in France for purchasing a new three-room apartment (T3). A barometer by Empruntis indicates that the average price for such an apartment in Lyon is close to 390,000 euros, trailing only Paris and Nice. Despite a general slowdown in the real estate market, Lyon remains one of the least accessible metropolitan areas for households.
This price pressure is primarily attributed to an insufficient supply of new housing coupled with sustained demand. The average age of buyers has also increased from 35 to 37 years, reflecting the growing challenges faced by younger generations in accessing homeownership.
ECB Rate Hike Adds Pressure to Borrowers
Further complicating the real estate landscape, the European Central Bank (ECB) raised its interest rates by a quarter point to 2.25% on June 11, the first increase in three years. This move, aimed at containing inflation linked to the conflict in the Middle East, could further impact the affordability of mortgages for prospective buyers.
While Emmanuel Moulin, the new Governor of the Banque de France, stated that this is not “a new upward cycle,” some economists argue that direct interest rates have no impact on the geopolitical conflict, and thus do not address the root causes of inflation. Instead, they suggest it merely adds instability to an already tense situation, potentially making borrowing more expensive and exacerbating the housing crisis.
Leadership Changes at Serl and Lyon Métropole Habitat
In related news, Sébastien Michel, Mayor of Écully, has been appointed President of the Société d’équipement du Rhône et de Lyon (Serl), the historical urban development operator for the Lyon metropolis. He succeeds Hélène Geoffroy, the former Mayor of Vaulx-en-Velin.
Concurrently, Jérémie Bréaud, Mayor of Bron and Vice-President of the Métropole de Lyon responsible for security, has been named head of Lyon Métropole Habitat (LMH), the agglomeration’s main social housing provider. LMH manages nearly 34,000 housing units and houses approximately 67,000 tenants, playing a crucial role in addressing social housing needs.
Preparatory Work Begins for New IHU Building at Croix-Rousse Hospital
In a significant development for medical research, preparatory work began in June for the future six-story, 6,000 m² building of the University Hospital Institute (IHU) of Lyon at the Croix-Rousse hospital. This facility, dedicated to liver disease research, is expected to be delivered in spring 2028.
The project, led by Hospices Civils de Lyon, Lyon 1 University, Inserm, and the Léon-Bérard center, aims to bring together researchers and caregivers on a single site to accelerate medical innovation. The total investment for this state-of-the-art facility amounts to 32 million euros.
Catanéo Reports Impressive 74% Growth
Catanéo, a Lyon-based specialist in turnkey rental investment, announced a remarkable 74% growth in 2025. The company, located in the 2nd arrondissement, increased its turnover to 6.5 million euros, up from 3.7 million the previous year, and doubled its workforce from 20 to 41 employees. Catanéo has completed 230 real estate projects and now manages over 1,000 tenants.
For 2026, Catanéo aims for an 8 million euro turnover, further recruitment, and franchise development in the Auvergne-Rhône-Alpes region, indicating continued expansion and success in the rental investment sector.
Source: Lyon Capitale
