Supply of houses shrink further
The Netherlands is a small but densely populated country, with a high average of people per square kilometer. In the Randstad, the country’s bustling economic hub, this figure soars to more than 1,000 people per square kilometer. With a growing population of over 18million, demand for housing has outpaced supply for years.
While this vibrant growth might suggest an abundance of homes, the reality is quite different. A significant housing shortage persists, with the country currently lacking around 350,000 homes. This gap has been exacerbated by slow construction progress, rising building costs, and government policies that make renting out their properties less attractive for landlords. Many rental properties have been withdrawn from the market entirely, further reducing availability.
As a result, competition for rental homes is intense, and prices have climbed steadily. In the private sector, rents have increased by 7,7% on average over the past year, with some regions – particularly urban areas like Amsterdam – seeing even sharper rises.