Buying a house in the Netherlands now 5 times more expensive than in 1993
New data published by real estate valuation company Calcasa reveals that, in 2023, Dutch house prices are five times higher than in 1993
Dutch house prices increase fivefold in 30 years
Anyone who is at all familiar with the Dutch housing market was already aware that buying a house in the Netherlands is an expensive endeavour, with house prices having doubled over the past decade. While this was already pretty disheartening for those dreaming of homeownership, new data reveals exactly how much the national housing market has changed in the 21st century.
According to Calcasa, by the summer of 2023 the average cost of an owner-occupied home in the Netherlands (i.e. not a new-build property) is 434.000 euros. While this is 5,6 percent lower than last summer, it is a fivefold increase compared to 1993, when the average price was 82.000 euros.
Sharpest price hikes seen in Amsterdam
Unsurprisingly, there are huge differences between different regions and cities; unsurprisingly, the sharpest increases have occurred in the Randstad region. North Holland has seen the biggest rise, with prices now 6,1 times higher than 30 years ago. In Limburg, on the other hand, prices in 2023 are 4,2 percent higher than in 1993.
On a similarly unsurprising note, Amsterdam is the city where house prices have risen the most, from an average of 81.000 in 1993 to 588.000 in 2023; this means prices in the Dutch capital are now 7,3 times higher than 30 years ago. Haarlem follows in second place, where prices are now 6,9 times higher, while Bloemendaal rounds out the top three (6,6 times higher). Utrecht (6,5 times higher) and Rotterdam (6,3 times higher) also nabbed places in the top 10.
High demand and shortage of housing lead to rising prices
Calcasa reports that this drastic increase over the past three decades can be attributed to “a combination of factors”, including inflation. As the population of the Netherlands has grown, so too has the demand for housing: “this growing demand has driven up prices, especially in urban areas where the scarcity of available housing is even more palpable.”
Salaries have also increased significantly since the early 1990s, leading to a rise in purchasing power. Falling interest rates for mortgages have also made the possibility of owning a home a more attractive financial option, further increasing demand for housing across the country.
Finally, while demand has grown, ”the availability of building land and the challenges in the construction sector have limited the supply of new homes,” Calcasa explains. Strict building regulations combined with a lack of space have piled on top of the existing problems, allowing for further increases in prices.
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