At the initiative of the La Réunion section of the french Confédération nationale du logement, a demonstration was held in front of the Préfecture on 26 October on the theme of housing. Participants included tenants and housing applicants. On La Réunion, the system is incapable of respecting this right, despite the right to enforceable housing being enshrined in law.
The grievances have remained the same for years. There is not enough social housing. According to estimates, the number of families on the waiting list is close to 50,000. The other problem is the cost of rent. For one room in social housing, the rent is often 500 euros a month, which is almost equivalent to the minimum income.
To enable social landlords to find tenants, public money comes in the form of a subsidy paid directly to the landlord: the housing allowance. Workers’ contributions to the Caisse d’allocations familiales keep this system running.

The scandal of ‘social’ rents costing several hundred euros a month

This makes it possible to maintain an excessively high level of rent for social housing on the basis of a construction cost that is ‘outside the norm’. How can it still be accepted that social housing has a production cost of around €1,500 per square metre or more? The cost of land, remoteness and other justifications have a lot to answer for. There is clearly a problem, and we need to ask who is benefiting from this system, which is financed directly by the State via the Single Budget Line or the tax exemption granted to social landlords. Certainly not the Réunionese, who lack housing that is suited to their ability to pay.
In fact, for someone receiving the minimum income of just over 500 euros, the logical thing to do is to pay no more than 100 euros in rent, without any assistance. That’s the definition of social housing. If the system doesn’t want to do that, then it’s up to the Réunionese to look for other solutions.
It’s a shame that the demonstrators on Saturday didn’t raise these and other issues, which perpetuate a system that thrives on the insecurity of the Réunionese. It is essential to go beyond media coverage to challenge a system that is responsible for the crisis.

International call for tenders: build 50,000 social housing units in a maximum of 5 years

The figures are in: there is a shortfall of 50,000 homes. Wouldn’t an international call for tenders quickly solve this problem? In China, India and other BRICS countries, there are many companies that can build 50,000 quality homes for a few tens of thousands of euros in a short space of time, thanks to their engineering and cost control capabilities. Negotiations will of course have to include the employment of Réunionese workers on these sites. Nearby in Madagascar, a Mora dwelling similar to a luxury social housing unit in La Réunion is delivered for 10,000 euros, compared with 150,000 euros in our country. Admittedly, the workers’ wages are lower, but it’s important to ask ourselves how such a difference can be explained. But missions to Madagascar on this subject are not on the agenda of decision-makers, who prefer to draw inspiration from Western solutions that are clearly unsuitable.
In La Réunion, the social landlords are major French companies. Caisse des Dépôts et Consignations, the bank for French local authorities, owns most of the social housing stock via a subsidiary. The other major player is a subsidiary of the French Action Habitat group, SHLMR. All they are doing is importing the French social housing construction system to La Réunion, with a few adjustments. Under these conditions, it is hardly surprising that costs are spiralling out of control, to the detriment of tenants and workers who pay contributions to the Caisse d’allocations familiales.

Does Paris want to solve La Réunion’s housing crisis?

These French companies undoubtedly have sufficient liquidity to pay cash for 50,000 social housing units to a Chinese or Indian company employing Reunionese workers. If they persist in remaining in the comfort of importing the French production system, then the question arises as to the usefulness for the Reunionese of Paris controlling La Reunion’s social housing stock.
All this argues in favour of transferring responsibility for housing to the Reunionese, given Paris’s failure in this area. There is no doubt that the Reunionese will be able to find the companies in the world capable of rapidly building the 50,000 social housing units that are lacking, at rents that are in line with tenants’ ability to pay.

M.M.