Buying a house in the Netherlands now requires 160.000 euros in savings

As house prices in the Netherlands continue to rise, buying a home is becoming increasingly out of reach for many. The amount that homebuyers have to pay out of pocket when purchasing a house has grown to an average of 160.000 euros.

Dutch house prices higher than average mortgage 

Research by price comparison site Independer has revealed that homebuyers now need an average of 160.000 euros in savings to afford a home, up 28 percent compared to six months ago. The average price of a house in the Netherlands is over 520.000 euros, while the average homeseeker can only get a mortgage for 360.000 euros.

According to Independer, “the shortfall in buyers’ mortgages is rising significantly faster than the price of a house”. Despite this, the number of mortgage applications has still been rising steadily, up 20 percent in the third quarter of this year. 

Buying home in the Netherlands easier for dual-income households

Couples have an easier time buying a house in the Netherlands as they are generally able to borrow more, at over 475.000 euros. “So, for two people, you're "only" 45.000 euros short,” explains mortgage expert Marga Lankreijer-Kos. “Of course, not every house costs 520.000 euros, which means there are opportunities for dual-income households in the housing market.” 

With single-income households only able to borrow just over 300.000 euros, it can be more of a struggle to find an affordable home for this group. “That sounds like a substantial amount. But don't forget that there are also dual-income households fishing in the same pond, which creates even more competition in an already very tight market.” Indeed, residents with a single income can only afford 2 percent of homes on the Dutch housing market.

The housing shortage is expected to worsen in the next year, with new construction often falling short of government targets. For this reason, Lankreijer-Kos recommends that buyers use as much of their own money as possible.

“It's also wise to do your own research. For example, there are new construction projects that prioritise first-time buyers or former students. It's also helpful to talk to mortgage advisors in the area. They're generally well-informed about the latest developments in the area and can therefore offer valuable tips.”