Published April 22, 2025

Rental Report Q1 2025: Rising rents and shrinking supply put Dutch rental market under pressure

Pararius releases its Rental Report each quarter, offering insights into the trends within the Dutch private rental sector. The Q1 2025 edition highlights a further destabilisation of the rental market, driven by a sharp drop in available properties and steadily growing demand. These developments are pushing rents upward, especially in the more affordable housing segments.

Significant decline in available rentals

During the first quarter of 2025, only 12,677 private sector rental homes became available to new tenants—a notable 35.5% drop compared to the 19,646 homes listed in the same period last year. At the same time, 14,340 properties were taken off the market, reducing overall supply even further.

Rent increases outstrip inflation

The average monthly rent for private sector housing reached €1,781 in Q1 2025, reflecting a 9.6% year-on-year increase. The average rent per square metre climbed to €19.64. This marks the first time in a while that rental growth has outpaced inflation. Apartments and single-family homes saw rental increases of 10.2% and 12.0%, respectively. Average per-square-metre rates stood at €20.77 for apartments and €15.84 for single-family homes.

Demand keeps increasing as well

There was a 47% jump in the number of responses per listed rental property, with an average of 47 replies per home. The highest interest was in the lower price range (€1,185–€1,500), which received 44.2% of all responses while comprising just 30.1% of listings. The mid-range segment (€1,500–€2,000) is also tightening, with demand outstripping supply. Meanwhile, high-end rentals (above €2,000) made up 36.5% of the listings but drew only 18.3% of total interest.

Accesebillity remains a problem

Rental agents commonly require a gross income of at least three times the monthly rent. Given the average rent of €1,781, this implies a monthly income of over €5,340 is needed—well above the national average Dutch income of €3,458 (gross) in 2025. As a result, a substantial portion of private rentals remain financially inaccessible to a large group of potential tenants.

Rental supply continues to shrink

The investor sell-offs persist: 1,849 rental properties were sold in Q1 2025, marking a 70.4% increase compared to last year. Simultaneously, the inflow of owner-occupied homes entering the rental market dropped by 14.7%. This trend further reduces the already limited supply. The homes being sold are typically smaller than the current average rental offering, which may impact the price per square metre.

Rental prices rose across nearly all regions. Among the five major cities, Rotterdam saw the strongest increase in price per square metre (+8.0%, €20.84), followed by The Hague (+6.4%, €20.58), Eindhoven (+4.5%, €18.09), and Utrecht (+4.0%, €21.16). Amsterdam registered a modest rise of 1.2%, reaching €27.03 per square metre.

At the provincial level, Friesland led with a 14.9% increase (€14.22), followed by Drenthe (+11.9%, €13.71) and Limburg (+9.5%, €14.96). Despite only a 2.4% increase, North Holland remained the most expensive province, with an average of €23.60 per square metre.

Looking forward

The findings from the first quarter of 2025 underline the ongoing accessibility challenges in the private rental sector. With decreasing supply, rising prices, and stricter regulations, pressure on the rental market remains high. Without targeted policies to safeguard and expand private rental availability, the situation is expected to deteriorate further.

Access the full Q1 2025 Rental Report