Pandemic not enough to cool down NL housing market; Prices up 12%

Even after three quarters of the coronavirus crisis, the Dutch housing market ended 2020 overheated. At the end of last year, an average home in the Netherlands cost 365 thousand euros, 11.6 percent more than at the end of 2019, according to figures released by realtors' association NVM on Thursday, NOS reports.

Home prices increased most in Hardenberg and Zutphen, with both municipalities seeing price increases over 20 percent. According to the NVM, this is line with the trend of more and more people leaving the Randstad behind for bigger homes in the eastern provinces. "This may indicate the increased importance of living space in work-from-home and corona time,' the association said.

Amsterdam homes saw the smallest price increase at only 3.4 percent. According to NVM, the coronavirus pandemic meant fewer expats coming to Amsterdam, resulting in less demand for homes.

The Netherlands is facing a severe housing shortage. On average, buyers can choose between two homes in their price range. "Never before has the Netherlands had a tighter existing owner-occupied housing market," the NVM said. In mid-November, about 25,500 homes were for sale in the country, almost a third less than a year earlier.

"Fortunately, almost all political parties now pay a lot of attention to this social issue and recognize the problem in their election programs," NVM chairman Onno Hoes said, according to the broadcaster. "Good intentions are a start, but the housing market is crying out for action. We really need a substantial increase in the number of homes, so that they remain affordable and people can move into suitable housing."