The cost of Dutch housing is expected to see a sharp increase in 2025. With the cost of buying a house set to rise by around 7,5 percent and rental prices to increase by up to 7,7 percent, the housing market in the Netherlands is bound to become even more of a challenge.
Due to increasing wages, housing shortages and the drop in mortgage interest rates, the Dutch central bank (DNB) predicts that potential homeowners will need to fork out around 520.000 euros on average to purchase a house in the Netherlands this year - 7,5 percent more than in 2024. What’s worse, this is also likely to increase the chance of overbidding.
To be able to afford a house for that cost, a household would need a gross annual income of at least 106.000 euros. According to the DNB, only around 36 percent of households earn that much.
While the government aims to build 100.000 homes every year, the Dutch bank believes that more than this is necessary to solve the problems in the housing market. One suggestion is phasing out mortgage tax relief for homeowners to lessen the demand on the buyer's market. According to NU.nl, another option is a “well-functioning rental market”.
From 2025, the maximum rent increase set by the government will be 4,1 percent in the private sector. According to NOS, this means that a basic rent of 1.300 euros per month could go up to 1.353,30 euros.
The rent increase for mid-range rentals will have a maximum of 7,7 percent, which means the monthly cost of 1.000 euros will rise to 1.077 euros. Rents for social housing will see a maximum increase of 5 percent, costing someone paying 600 euros 30 euros more each month. The sharp increases are mainly due to the increase in collective labour agreement wages and inflation.
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