Dutch housing shortage rises to over 400,000 as population growth outstrips construction

The Netherlands currently has a housing shortage of around 401,000 homes, compared to 390,000 in 2023, according to research agency ABF. The number of households is growing faster than new homes are being built.

The ABF calculates the housing shortage for the central government every year. The shortage has been rising for three years in a row. The figure includes the current number of households and people who want to form a household but can’t because no housing is available. That includes different families sharing a home or young adults still living with their parents, for example.

A shortage of 401,000 homes is equivalent to 4.9 percent of the current housing stock. The previous government aimed to bring that shortage down to 2 percent, assuming that this would still leave home seekers with some search and waiting time, but the housing market would no longer be overheated, NOS reports. Achieving a 2 percent shortage means the Netherlands needs to create 232,000 homes for the current situation. Last year, over 88,000 homes were added to the housing stock.

A 0 percent housing shortage could also have negative consequences, ABF researcher Leon Groenemeijer told NOS. “Regional surpluses of homes could arise. People then choose, for example, to wait for a better home elsewhere, and then you can end up with vacancies and deterioration. And homeowners may see the value of their home fall.”

The previous government aimed to reduce the housing shortage to 2 percent by 2031 by building 100,000 homes per year. According to the ABF, given recent years’ housing construction and the expected population growth, that target has increased to 116,000 homes created per year between 2024 and 2030. On Friday, Statistics Netherlands reported that the Dutch population should hit the 18 million mark in August.

“The housing shortage remains as high as ever,” Minister Mona Keijzer of Housing and Spatial Planning said in a response. “This has put many people’s lives on hold. We really have to start building for all those people who are waiting for a home. That is why the main lines agreement states that the government wants to realize 100,000 new homes every year. I will discuss throw we are going to work together on this with everyone involved in the near future.”

Earlier this week, the Economic Institute for Construction (EIB) said that the government is focused too one-sidedly on new housing construction and should pay more attention to creating homes by splitting, topping up, and transforming existing buildings. According to the advisory body, the current regulations make it possible to realize 100,000 to 120,000 additional homes in this way. And that potential can be increased by a quarter with targeted subsidies and by amending rules that stand in the way.