Amsterdam to prioritize low-rent homes in new construction projects

Housing Market
. Housing Market / Flickr

Amsterdam is committed to creating more housing for people with low- or mid-level incomes. To realize this, the municipality is implementing a ratio for new construction projects - 40 percent social housing, 40 percent mid-level rents and 20 percent expensive housing, the city announced in a press release. 

According to the city's Housing Agenda 2025, Amsterdam has a definite deficit in social housing and middle class housing. The municipality also wants Amsterdam to stay a "mixed city", where people of all levels of income can find a place to stay. New construction projects must contribute to this, according to the city. And to encourage the 40-40-20 ratio, Amsterdam will settle for lower revenues from land allocations.

"If we leave it up to the market, people with low or middle incomes will soon no longer be able to live in Amsterdam." Alderman Laurens Ivens said. "With the current construction pace, and if housing corporations reduce the sale of social housing, the 40-40-20 scheme will create 20 thousand social housing rentals by 2025 for the low income groups."

"But also the 40 percent for middle-class homes is another huge extra investment", he added. "These are homes now being rented by the market for 1,500 euros and which will eventually cost 850 euros per month. Thus we keep Amsterdam a mixed city with affordable hosing and space for everyone."

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