Tight supply means fewer options for tenants; Average rent hits €2,305 in Amsterdam

Tenants in the private rental sector once again had significantly fewer homes to choose from in the past quarter, according to Pararius. The housing platform attributes this partly to landlords selling their properties rather than renting them out again. This has driven rental prices up in the five largest cities, marked by an increase of over 4 percent to 2,305 euros in Amsterdam over the past year.

In the third quarter, 2,051 homes that were previously rented were sold, significantly more than the 1,261 rental homes sold in the same quarter of 2023, Pararius said. Earlier this year, former Housing Minister Hugo de Jonge introduced a law regulating rent prices in the mid-range sector. Many landlords now find it less appealing to rent out their homes and instead are choosing to sell the property once tenants leave.

According to the housing platform, higher tax burdens also play a role in this trend. Additionally, fewer homes are being bought to rent out as well, it added.

A total of 12,368 homes became available for new renters in the private sector, a 37.6% drop compared to the same quarter in 2023, Pararius reports. The platform claims to represent about a third of the total housing market in the Netherlands.

Private sector rent prices rose again in the last quarter, Pararius also stated. The national average rent for a private-sector home in the third quarter was €1,751 per month. The price per square meter was €19.28, a 7.4% increase compared to the same quarter in 2023. Families renting larger homes were particularly affected, according to Pararius.

In the five largest cities, monthly rental prices per month have increased. For instance, tenants in Amsterdam paid an average of €2,305 per month in the last quarter, up from €2,213 a year earlier. At the same time, the average price per square meter actually fell in three of the five largest cities.

In Eindhoven, the price dropped 3% to €17.65, and in Amsterdam it fell by 1.7% to €26.96. In Utrecht, tenants paid €20.32 per square meter, 0.2% less. This may be because more larger homes have been rented out compared to previous quarters, Pararius suggested.

The Dutch Association of Realtors (NVM) announced on Tuesday that significantly fewer rental homes were leased in the third quarter. NVM real estate agents sold more homes, particularly apartments, partly because landlords were selling their properties.