Nearly a billion euros will be mobilized “in the coming months” to create 10,000 intermediate housing units, intended for the middle classes, the Ministers of Economy and Housing announced on Thursday. Of this sum, 400 million euros will be “provided by 14 insurers” and “250 million euros provided by the Caisse des Dépôts et Consignations” (CDC), while the State “will mobilize its own funds”, specified the Minister of the Economy Bruno Le Maire following a meeting with the federation of insurers and the CDC.

The objective, according to Bruno Le Maire, is to “massively develop the supply of intermediate housing which allows the middle classes to find accommodation at rates 10 to 15% lower than market rates”. “For that we need investments and we need investors,” added the minister. For the State, “this is not budgetary expenditure, I want to make it clear, it is investment,” he insisted.

“Insurers are committed to providing more than 400 million in equity to finance the intermediate housing sector,” according to a government press release citing AG2R La Mondiale, Allianz France, Assurances du Crédit Mutuel, Axa, BNP Paribas Cardif, BPCE Assurances, CNP Assurances, Crédit Agricole Assurances, Groupama, Groupe MAIF, SMABTP, Société Générale Assurances, Suravenir, and Groupe VYV. Intermediate rental housing (LLI) was created in 2014. Reserved for tense areas where rents are soaring, it allows middle-class households whose income is too high to qualify for social housing to find a roof over their heads.

After a phase of constant growth, production has reached a little more than 15,000 intermediate housing units per year, recalls the government press release, which wants to “double the production of intermediate housing units by 2026 in order to accelerate residential mobility, particularly since social housing. In the second half of 2023, the government implemented a capital increase of 250 million euros within the Intermediate Housing Company, to quickly build 4,000 additional housing units, indicates Bercy.