Newly built homes in Netherlands getting smaller and smaller

Newly built homes in the Netherlands are getting smaller. Last year, the average new Dutch home was between 15 and 20 square meters smaller than in previous years, RTL Z reports based on figures from Statistics Netherlands analyzed by Buildsight. Experts say that is a break in the housing construction trend but not an unexpected one. The Netherlands has a housing shortage and is running out of space—smaller is the only option.

In 2023, the average new rental home was 105 square meters, 15 square meters smaller than in 2022. The average size of a new owner-occupied home dropped 20 square meters to 184 square meters. For both types of homes, last year had the smallest average surface area in over a decade.

According to experts, the smaller homes are a response to the housing shortage and rising home prices. Building big doesn’t yield enough homes, and people who need a home can no longer afford large ones.

“In the Netherlands, we have long held on to the tradition of the single-family home with a garden in front and back,” said Michel van Eekert of Buildsigth. “But land is so scarce, plots are getting smaller and smaller, and construction costs have risen enormously due to expensive materials and new technology in the home. Then building smaller is the only solution to keep it affordable.”

“Real estate prices have risen faster than wages in recent years; the only way a new construction project can continue is by cutting back on the number of square meters per home. That is happening now,” said Marja Elsinga, a professor of housing policy at TU Delft.

There is also a fair amount that can be cut, Elsinga pointed out. Netherlands residents live on an average of 52 square meters. The European average is 43 square meters per person. With an average size of 185 square meters, the average new owner-occupied home is still very large.

In large cities, the extreme demand for homes has created a new segment—micro-apartments. These are studios of 25 to 35 square meters that a well-earning single person can just about afford. Some come equipped with special furniture, like a loft or foldaway bed, to make optimal use of the scarce space. Others offer shared workspaces or guest rooms that residents can use when needed.

According to Elsinga, a generation gap is emerging in the housing market. “Older people sometimes find these kinds of small homes inhumane and see that as something negative. But a young first-time buyer would rather have a foldaway bed in his own home than nothing at all.” About 39 percent of households consist of one person, and that is expected to grow, Elsinga said. “So build smaller.”

Van Eekert of Buildsight added that larger homes will also be needed for people getting married and starting families. “We also need to build big for the flow,” he said. “But right now, too many people are using too much living space at the expense of people who have nothing. If we want to continue building, smaller types of housing will have to come onto the market.”