Large cities concerned about conditions for new housing construction

The major cities of the Netherlands are concerned about the current circumstances in the segment of the construction sector responsible for new building projects. The cities have enormous needs and ambitions due to the housing shortage in the country. "Don't turn the housing crisis into a construction crisis," said a spokeswoman for Amsterdam's housing alderman, Reinier van Dantzig.

New construction projects have not yet been postponed in the capital. However, this is an issue in Utrecht and The Hague.

Amsterdam aims to build 7,500 homes annually. "But due to rising construction costs, rising interest rates and staff shortages, that is not a certainty," said the spokeswoman. She thinks it will be particularly uncertain in areas where offices have to make way for homes. Projects have not yet come to a standstill, but delays are emerging.

The nitrogen emissions crisis is having an effect on new construction, along with the rising costs and higher interest rates, something which is visible in Utrecht. "In the spring of 2022, we still expected that the construction of 1,300 homes could begin in 2022; in the autumn we reduced that expectation to 1,000," said a spokesperson for Alderman Lot van Hooijdonk, who handles housing issues in the city. More recent figures are not yet available.

Fewer new homes are also being sold in Utrecht. The spokesperson said that the recent falling prices on the housing market is mainly on existing homes, with the dip in the market not yet be reflected in the price of new construction. Additionally, buyers have shown a lack of confidence in the current market.

The Hague has also noticed that there are many concerns in the sector about the current circumstances. "At the moment, a few projects with large construction programs have been permitted where the developer cannot yet start construction due to the reluctance of parties in the market," said a spokesman for Alderman Robert van Asten for the city's urban development issues. The current housing situation requires cooperation between the municipality and market parties, as well as trust, he said.

The cities also see a role for the national government. "The government will also have to take its responsibility in this. We are in a crisis and crisis measures must be taken for this," said the spokeswoman for the Amsterdam political leaders. "It would be very good, for example, to reduce the VAT for construction." Developers must also be able to rely on "receiving their money at the end of the ride," Amsterdam believes. "Otherwise they won't build."