Netherlands residents spend more on housing costs than most other EU citizens

Netherlands residents spend an average of 22.6 percent of their income on housing costs. That is more than in most other countries in the European Union, Statistics Netherlands (CBS) reported on Tuesday.

The Netherlands ranks sixth among the EU countries when it comes to housing costs. People in Greece spend the biggest part of their income on rent or mortgage (34.2%). Denmark (25.4%), Germany (24.5%), Luxembourg (23.8%), and Bulgaria (23.3%) are in second to fifth place. The European average is 20 percent.

Since 2015, rents in the Netherlands have increased by 18.5 percent, putting the Netherlands in the European middle bracket. On average, rents in the EU have increased by 13 percent since 2015. Central and Eastern European countries saw the biggest increases. In Lithuania, for example, rents increased by 68.2 percent.

According to CBS chief economist Peter Hein van Mulligen, housing costs are generally the highest in rich countries. The fact that Greece and Bulgaria are in the top five is due to housing costs being calculated as a percentage of income in this study. “Bulgaria has one of the lowest incomes in Europe, which means that housing costs quickly take up a larger share of income.”

CBS also reported that the Netherlands counts many young adults aged 25 to 30 living on their own. In the Netherlands, about 17 percent of young adults in this age group still live with their parents, compared to over 80 percent in Croatia, for example. That may also play a part in the Netherlands’ high position on the housing costs ranking. Young people tend to earn less than older age groups who've had a few promotions.