Disposable household income up slightly, mortgage debt increased by 7.3 billion euros

Dutch households had slightly more money at their disposal in the third quarter of this year than in the same period a year earlier, according to Statistics Netherlands (CBS). Wages that rose due to new collective bargaining agreements and more working hours played an especially important role in this, according to the CBS. At the same time, mortgage debt also increased.

Real disposable income rose by 0.8 percent. That's the increase in disposable income adjusted for price increases. Income for both employees and the self-employed was higher than in the third quarter of 2021, with total compensation of employees rising 8.3 percent. Also the number of working hours grew 3.2 percent, while collectively agreed wages increased 3.4 percent

The increase in total benefits received was 5.1 percent. Furthermore, low-income households received compensation for higher energy prices, and more state pension benefits were paid. Households on the other hand, paid 2.8 percent more in taxes and social security contributions.

The total mortgage debt for all Dutch people rose by 7.3 billion euros, bringing the total mortgage debt to 811.5 billion euros, CBS reported.

In the process, the debt ratio, total mortgage debt as a percentage of the size of the economy, went down. It now stands at 88.2 percent. This is the lowest level since the third quarter of 2003.

In general, the lower debt ratio is caused by stronger growth in gross domestic product (GDP) than in total mortgage debt.