The French Senate’s Economic Affairs Committee has taken a decisive step toward addressing the persistent housing crisis by formally referring the construction materials market to the Competition Authority. This move, finalized during a meeting on May 6, 2026, comes as a direct response to a series of price hikes that have plagued the sector since the end of the global health crisis. Committee members expressed concern that these rising costs are now actively hindering the ability of construction firms to contribute to a meaningful economic recovery.
Under the proposal of Senator Yves Bleunven and the leadership of Committee President Dominique Estrosi Sassone, the referral invokes Article L. 462-1 of the Commercial Code. The Senate is specifically calling for a deep dive into the competitive functioning of upstream markets, with a particular focus on those that are highly concentrated. By analyzing the relationships between various actors along the value chain, the Committee hopes the Competition Authority can identify market distortions and provide recommendations to stabilize costs for the broader industry.
A primary objective of this referral is the potential creation of a dedicated monitoring tool for production costs. Since the government abandoned a similar project in 2023, the sector has lacked a specific index to navigate the extreme volatility of material prices. The Committee believes that a formal monitoring system, designed to respect the existing competitive framework, would provide much-needed visibility for developers and builders who are currently operating in an unpredictable environment.
The stakes for this investigation are high, as the cost of construction remains a bottleneck for national housing goals. While there has been a slight recovery in the past year, the numbers remain well below the target of 400,000 homes annually. With only 275,000 housing starts recorded in 2025, leadership within the Economic Affairs Committee emphasizes that objectifying market functions is essential to protect the life paths of citizens impacted by the shortage. This legislative mobilization aims to ensure that the fragile momentum in the construction sector is not derailed by opaque pricing structures.
