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# [LA RÉUNION] Housing Crisis Reaches New Scale: 51,422 Households Waiting, Construction Sector Under Pressure
- URL: https://businessoi.media/en/la-reunion-logement-la-crise-change-dechelle-51-422-menages-en-attente-le-btp-sous-pression-en/
- Published: 2026-08-16T02:49:04.000Z
- Updated: 2026-08-16T02:49:04.000Z
- Description: 51,422 households on waiting lists in Réunion, 2,500 homeless, 24,000 in precarious housing: the crisis reaches a new scale and strains the construction sector. Only 1 in 8.3 applications is met.
- Author: Emmanuel TAOCHY
- Tags: La Réunion, emploi, Économie, Finances publiques, Revue matinale, #en

This figure captures a social emergency that has now become an industrial-scale issue: **51,422 households in Réunion** are on the social housing waiting list, according to 2026 observatory data. In 2025, only **1 in 8.3 applications** was fulfilled. Réunion's housing crisis has shifted to a new scale — and it is destabilising the entire residential and construction chain.

## Numbers That Tell a Stark Story

Beyond the record waiting lists, multiple indicators are flashing red. More than **2,500 people** are homeless in 2025, up from 1,800 in 2019 — a nearly 40% increase in six years. Around **24,000 households** live in precarious housing. The private rental market is out of reach for more than **50% of households**, with median rents at **€17 per square metre** despite structurally low incomes.

## Short-Term Rentals Intensify the Pressure

An often-underestimated factor is making the crisis worse: the explosion of short-term tourist rentals. The stock has now reached **8,200 properties**, up **1,700% in ten years**. These homes, withdrawn from the permanent rental market, are desperately needed by low-income households. At the same time, **20,000 private properties** sit vacant — a glaring paradox amid the shortage.

## Construction Sector Under Strain

The construction industry is bearing the full brunt of this crisis. In 2025, just **2,120 subsidised homes** were financed, including 1,024 in the lowest-cost social category. Delivery delays are mounting — **8,604 homes financed but not delivered** — putting cash flow pressure on firms. Rising construction costs and regulatory complexity are squeezing margins, forcing several operators to scale back.

## Why It Matters

Réunion's housing crisis is not just a social issue — it is a structural economic constraint. Workers facing housing difficulties are less mobile and less productive. Underfunded construction companies invest and hire less. And without affordable housing, Réunion risks losing the skilled workers it already struggles to retain. Decision-makers must treat this as an economic priority — not just a humanitarian one.