The Netherlands to see 'significant dip' in construction of new homes
Dutch Housing Minister Hugo de Jonge has warned the House of Representatives (Tweede Kamer) that next year is not going to be a great one for the Dutch housing market; while the country works to combat a severe housing shortage, De Jonge writes that 2024 will see a “significant dip” in the construction of new homes.
Construction of new homes to slow significantly in 2024
Over the past few years, the Dutch government has taken several steps in an attempt to reduce the Netherlands’ shortage of housing, including building a record number of new homes in 2022. Targets outlined by the government state that, from 2024, at least 100.000 homes will be constructed every year.
The likelihood of these targets being met is slim, however, as De Jonge warns the Netherlands will likely see a “significant dip” in the construction of homes in 2024. The Economic Institute for Construction (EIB) expects that this year will see a 3,5 percent drop in the number of new properties, followed by a further 5,5 percent decrease in 2024.
Interest rates, inflation and lack of land make it harder to build
While demand continues to rise, a variety of factors - including high interest rates on mortgages, inflation and rising costs, climate policies, and a notable lack of land to build on - will serve to make it harder for the government to fund the construction of new residential buildings.
In order to limit the imminent “dip”, De Jonge is calling on provinces and municipalities to look for alternative locations for projects that are already delayed, and is entering into “acceleration talks” in order to speed up the processes for developers. From the first planning stages to the finishing touches, it takes an average of 10 years to build a new home - De Jonge would like to halve this number through his new Public Housing Management Act.
Dutch minister looking for alternative solutions to housing shortage
In addition to making it easier to complete large-scale projects, the Housing Minister is looking into other more unconventional solutions to the housing shortage. Last week, for example, De Jonge told parliament that between 80.000 and 260.000 additional homes could be created in existing buildings by adding extra floors or splitting up properties.
De Jonge also said he wanted to make it easier for homeowners with outdoor space to get the permits required for so-called micro homes. "Especially now that new construction is having a more difficult time, we must make the best possible use of the existing housing stock in order to create as much living space as possible,” he explained.
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