Free sector rent per square meter up almost 10 percent in past quarter; Supply drying up

Finding an affordable rental property is becoming more difficult by the day. The average square meter price increased by almost 10 percent in the past three months compared to a year earlier, and supply decreased by almost a third. According to housing platform Pararius, this is largely due to government measures intended to make the rental market more accessible.

In the past quarter, approximately 33 percent fewer rental properties became available than a year earlier. Homes from this segment are increasingly going to the owner-occupied market, which, according to Pararius director Jasper de Groot, has happened at least 8,000 times since the beginning of last year.

“And these figures are only based on the owner-occupied homes offered on Pararius; in reality, this number is most likely three times as high,” he said in the platform’s quarterly report.

Former housing Minister Hugo de Jonge, with the support of the Senate and parliament, last month introduced a law to make rents in the middle segment more affordable, resulting in lower returns for landlords. Before that, they started selling their properties due to less favorable tax rules. The new Housing Minister Mona Keijzer, herself not in favor of her predecessor’s law, has said she wants to wait and see whether the effect of the tighter rental market is temporary before she implements changes.

“Although the government measures are intended to stabilize the housing market, we see the opposite effect in the private sector. This significantly reduces the freedom of choice of tnenats. Moreover, if these tenants consider moving to the purchasing market, they are confronted with high entry prices,” said De Groot about the also tight purchasing market, where prices are also at record levels.

In the five big cities, rents rose the fastest in Rotterdam and The Hague, by about 9 percent. Amsterdam remains by far the most expensive place to rent at 27.57 euros per square meter, but like Utrecht, only saw a limited increase. Rent fell in Eindhoven, as it did in the smaller municipalities of Diemen, Hoorn, and Almere, among others.

The Limburg cities of Heerlen, Geleen, and Sittard are still the cheapest municipalities to rent in. Zandvoort experienced a remarkably strong increase of 14 percent and, like Laren, Amstelveen, and Leiden, is one of the most expensive places for a rental home.