Tenants spend more of their income on housing than homeowners; Young singles hit hardest

In 2022, tenants spent much more of their income on housing costs (25.5 percent) than homeowners (16.6 percent) on average, Statistics Netherlands reported. Young, single tenants spent the most of their income on housing. Older single tenants were also hit hard.

The housing ratio—the total housing costs as a percentage of disposable income—is related to people's stage of life. In 2022, the youngest tenants had a median housing ratio of over 30 percent. Tenants between 35 and 65 spent around 25 percent of their income on housing. Older tenants’ housing ratio increased again as they aged.

“Young people are still at the beginning of their careers and earn relatively little, which means that housing costs are relatively high,” CBS explained. “As people get older, their financial position generally improves faster than housing costs increase and the housing ratio falls. When reaching retirement age, household lose income and the housing ratio increases again.”

The housing ratio development is similar for homeowners, but the relationship is weaker than for tenants.

The family composition also plays a role in the housing ratio. One-person households and single parents in rented accommodation spent the largest share of their income on housing costs at 28.4 and 24.2 percent, respectively. Couples with (19.8 percent) and without (23.1 percent) children in rented accommodation spent a bit less. The same applies to homeowners but to a lesser extent. “Single-person households and single-parent households, despite lower housing costs, also typically have a lower disposable income.”

The housing ratio is the highest for single tenants under 35, at 28.8 percent. Single tenants over 65 come in a close second place, at 28.5 percent, followed by single tenants aged 35 to 65, at 28.0 percent. Couples aged 35 to 65 without children and in their own homes have the lowest median housing ratio, at 15.0 percent.

The housing ratio for single tenants is the highest in the municipality of Alphen Chaam in Noord Brabant, at 32.6 percent, and the lowest in Harlingen in Friesland, at 25.3 percent.