To encourage the construction of affordable housing across the Netherlands, the Dutch government has introduced a new programme that will pay municipalities 7.000 euros for each affordable home they build.
Affordable housing incentive for Dutch municipalities
The Dutch Minister of Housing and Spatial Planning Mona Keijzer announced a new scheme called the Realisation Incentive (Realisatiestimulans) that will pay municipalities for each affordable home they build. From autumn 2026, cities will receive a contribution of 7.000 euros per affordable home, construction of which has begun this year.
In 2025, the affordability threshold for owner-occupied homes is set to 405.000 euros - any affordable housing built will have to fall under this price range. Municipalities will be able to register affordable homes from the spring of next year and the programme will run until 2030, where the final contributions will be given out for homes constructed in 2029.
The creation of homes by making use of existing buildings also qualifies for the incentive. The government has allocated 2,5 billion euros for the Realisation Incentive, with 900 million euros of the amount reserved for additional support in vulnerable areas and care-suitable homes, among others.
More low-cost housing needed in the Netherlands
With housing prices on the rise and the Dutch housing shortage worsening, there is a need for affordable housing in the Netherlands. In fact, the majority of first-time buyers delay life events due to the housing shortage. While the government has set a goal to build 100.000 homes, the housing ministry noted earlier this year that this target would not be met until 2027.
The government hopes that introducing the new scheme will push things along and stimulate more construction of more affordable homes. “The housing shortage is great throughout the Netherlands. All municipalities have a housing construction task. With the Realisation Incentive, we support every municipality that builds affordable housing. We have set up a low-threshold scheme for this, and we will start this year,” Keijzer said in the announcement of the programme.
Linking the contribution to the beginning of construction is expected to be a good motivation for cities. “In this way, the Realisation Incentive stimulates the acceleration of housing construction and the inclusion of more affordable housing in the programming of housing construction projects by municipalities.”