Capital invites you to discover the number of square meters that a person paid the minimum wage can acquire in major French cities in November 2024.
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The future is finally becoming clearer for borrowers paid the minimum wage. The minimum wage will in fact be increased by 2% on November 1, to reach 1,426.30 euros net per month. Thanks to credit rates which have been falling for a year, the borrowing capacity of people on the minimum wage has already increased by almost 10,000 euros over the last twelve months. A person who has the minimum income will in fact be able to borrow 93,019 euros on November 1, 2024, with a loan spread over 25 years at the average rate in force, i.e. 3.60%. This borrowing capacity was calculated with monthly payments which reach 33% of the minimum wage, i.e. the maximum debt rate authorized by the High Financial Stability Council (HCSF), an authority placed under the aegis of Bercy.
In addition to the increase in their borrowing capacity, which has soared by 13% over the last twelve months, people earning the minimum wage have benefited from a decline in property prices over the past year in many large cities. In this rather favorable context for borrowers, the VousFinancer network of brokers has calculated the surface area that a person on minimum wage has the possibility of acquiring in 25 large French cities, with a loan spread over 25 years. The simulations were carried out with monthly payments excluding insurance which reach 33% of the monthly minimum wage, and a contribution corresponding to 10% of the price of the property. Good news, the real estate purchasing power of people earning minimum wage is increasing in all major cities.
In detail, people on minimum wage have gained from 2 to 12 square meters over the last twelve months depending on the cities studied by VousFinancer. The municipalities where the purchasing power for a person with the minimum wage is the highest in November 2024 are Saint-Etienne (72 square meters), Le Mans (52 square meters), Le Havre (44 m2), then Brest ( 43 square meters) and Clermont-Ferrand (42 m2). Conversely, a person on minimum wage cannot acquire on average more than 20 square meters in Lyon (20), Nice (18), Aix-en-Provence (18). With real estate prices reaching 9,279 euros per square meter, a person on the minimum wage has the possibility of affording an apartment of only 10 square meters in Paris.
Note that in five of the cities studied by VousFinancer, the real estate purchasing power of people on the minimum wage has increased by more than 20% in just one year (Le Mans, Villeurbanne, Grenoble, Lyon and Nantes). This is mainly explained by property prices which have fallen by -6 to -12% over the last twelve months in these municipalities. For example, borrowers on the minimum wage gained no less than 12 square meters over one year in November 2024, which represents approximately one additional room. Conversely, the gain in surface area is much more limited in Nice (+2 square meters over one year) and Angers (+3 square meters), two cities where property prices have increased slightly over one year.
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