Third fewer housing construction permits issued in third quarter
The number of housing construction permits issued in the third quarter of this year decreased dramatically compared to the second quarter. Municipalities issued permits for the construction of 12,400 homes in the third quarter, 6,500 less than in the second quarter, a decrease of 34 percent, Statistics Netherlands (CBS) reported on Thursday.
The number of housing construction permits was about 1,000 higher than in the third quarter of 2023, when the number of issued permits was incredibly low. CBS did not give an explanation for the decline.
A similar quarter-on-quarter decline was also visible between the second and third quarters of 2021 and 2023. “This may partly be due to a seasonal effect, but that is not a given,” CBS chief economist Peter Hein van Mulligen said. In 2018, 2019, and 2020, the decline was not so pronounced. According to the economist, there is no easy explanation. It is definitely not a lack of demand, given the ever-increasing housing shortage in the Netherlands. Staff shortages at municipalities likely play a role.
The number of issued housing construction permits is a good indication of the number of homes that will be built in the near future. New homes created through transformations, like converting office space into homes, are not counted in these figures.
In the third quarter, 17,100 newly built homes were delivered, the same number as in the previous quarter, but 2,000 fewer than in the third quarter of 2023. In total, a net 17,500 homes were added to the housing stock in the third quarter. In addition to newly built homes, homes are also added and withdrawn from the housing stock through mergers, divisions, and demolition.
