On October 1, 2021, the minimum wage increased by 2.2% after an increase of 1% in January 2021, in particular to take inflation into account.
Compared to 2019, the minimum wage has thus increased by 4.5% in total, from € 10.03 gross per hour to € 10.48, i.e. an increase of € 54 net per month.
“A significant increase but which has not followed the evolution of prices in certain medium-sized towns in France, sometimes greater than 15% over two years!”, Indicates the mortgage broker Vousfinancer. However, since 2019, lending rates have fallen again sharply, from 1.7% on average over 25 years to 1.25%, a decline of 45 basis points. “
The borrowing capacity of households with the minimum wage (for a monthly payment equal to 33% of the minimum wage) has thus increased by 10% in two years, from € 97,049 to € 106,913, or nearly € 10,000 more.
In 20 French cities, what surface area can we then buy with this income *, before and after the health crisis? Answers with the Vousfinancer study.
20 m2 in Lyon, 90 m2 in Saint-Etienne
The price differences between cities generate strong inequalities in real estate purchasing power in France. Thus, by earning the minimum wage, you can buy 10 m² in Paris, which is half the area than in Lyon (20 m²) or Bordeaux (23 m²) and even three times less than in Lille (30.5 m²) , Toulouse (30 m²), Strasbourg (30 m²) or Rennes (27 m²).
To have a larger surface, you have to buy in Saint-Étienne (90 m²) where the real estate purchasing power is the most attractive, in Le Mans (69 m²), in Le Havre (53 m²) or in Nîmes (52 m²) .
In Grenoble, real estate purchasing power with the minimum wage is close to 40 m², as in Toulon, while it is 36 m² in Angers.
Declining real estate purchasing power in half of the cities
Despite the increase in the borrowing capacity of households earning the minimum wage, the surface area that can be purchased in 50% of cities, mainly in medium-sized cities which have experienced double-digit price increases.
Thus, real estate purchasing power has decreased by 14% in Angers, 6% in Strasbourg, 5.6% in Saint-Étienne or Rennes, 4% in Lille and 3% in Lyon.
In cities like Paris or Bordeaux, which is now experiencing a lull after sharp price increases, real estate purchasing power is up by 6.5% and 7.2% respectively.
It is stable in two cities, Grenoble and Toulon, where it increases by 0.1% in the first and drops by 0.1% in the second.
* For a monthly loan payment, excluding insurance, equal to 33% of the minimum wage, by repaying a loan over 25 years at 1.25% with 10% contribution. Real estate prices: MeilleurAgents.com