Just 28,000 housing construction permits issued this year, down 17%

The number of housing construction permits issued for new homes reached 27,900 in the first six months of 2023, according to market research Capital Value based on figures from Statistics Netherlands. This is a decrease of 16.9 percent compared to the first six months of 2022.

“Although there is much attention in politics and media on the housing task, the required number of building permits just won't get off the ground,” Capital Value wrote. The specialist on the Dutch residential investment market attribute this decline in the number of building permits issued to increased mortgage interest rates, increased construction costs, insufficient capacity at municipalities, the many legislative proposals regarding the housing market, and nitrogen issues.

The decline is in stark contrast to the Cabinet's ambitious target of constructing roughly 900,000 new homes in the Netherlands by 2030. Research by ABF predicts the housing shortage will reach 390,000 homes by 2023, representing 4.8 percent of the housing stock. According to the consultancy firm, the government's aim to reduce this to 2 percent seems increasingly unattainable.

They also noted that the transaction volume in the Dutch residential investment market reached 1.51 billion euro in the first half of 2023, down 61 percent from a year earlier.

"There are enough plans to build an additional 30,000 affordable homes annually. Too much is simply lying idle now because it is no longer financially viable,” said Marijn Snijders, managing director of Capital Value. He urged political parties to persist in their efforts, emphasizing the importance of maintaining building production, even under a caretaker government. “The housing shortage affects everyone and should not be a controversial issue in decision-making. We cannot afford a delay now," he added.