The price of renting a home in the Netherlands cost Dutch residents an average of 5,4 percent more in July 2024 compared to the same month last year, reported Statistics Netherlands (CBS). This is the highest rent increase in over three decades, when rental prices increased by the same percentage in 1993.
According to CBS, rental prices in the Netherlands rose by a lot more this year than in 2023. In July last year, rents rose by an average of 2 percent compared with an average of 5,4 percent for the same period this year. However, the cost of social housing saw the largest jump.
Approximately two-thirds of all rental properties in the Netherlands are owned by social landlords. In July this year, rental prices for social housing rose the most, by an average of 5,6 percent by social landlords and 5,7 percent by other landlords. A year earlier, social landlords increased rent by just 0,1 percent and other landlords 3,7 percent. Private sector homes saw an increase of 5 percent, compared with 4,5 percent last year.
Social housing rents can be increased by a maximum of 5,8 percent from July 1 this year. “Before this, rent increases were often on the low side due to the high inflation, energy prices, and the coronavirus period, so that low incomes had higher purchasing power. This year is different,” said Peter Hein van Mulligen, chief economist for CBS.
Social housing is primarily meant for those with lower incomes. With developments such as wage increases staying higher than inflation and households having higher purchasing power, it was determined that social housing rental prices could be increased.
The Dutch city that experienced the largest rent increase of an average 5,9 percent was Rotterdam. The rest of the four largest municipalities also experienced increases, with Utrecht rents rising by 5,8 percent and The Hague by 5,4 percent. Amsterdam saw the lowest increase of the bigger cities with 5,2 percent.
Between January 1, 2024 and January 1, 2025, landlords are permitted to increase rents for housing in the private sector by a maximum of 5,5 percent. However, when the home is being rented by a new tenant, they may raise the rent by a larger percentage. This effect of resident changes added an average of 0,7 percent to the average increase in rental prices, bringing it up to 5,4 percent.