Rent per square meter increased 20% since pandemic; Supply dropped 40% in Q4
The supply of homes in the private rental sector is plummeting, and as a result, prices continue to rise, housing platform Pararius reported on Thursday. The number of available rental properties dropped by 40.4 percent in the last quarter of 2024, compared to a year ago, while the average rent per square meter climbed by 7.7 percent
The average rent per square meter for a private sector home in the Netherlands was 1,730 euros in the fourth quarter of 2024. That is an increase of 7.7 percent compared to a year earlier, and over 20 percent higher than quarter one of 2021, in the middle of the coronavirus pandemic. Netherlands residents now need to earn at least 5,200 euros per month to afford an average private sector rental property.
In quarter four, 12,274 private sector rentals became available for tenants in the Netherlands. That is a massive 40.4 percent less than in the fourth quarter of 2023 when 20,589 rentals became available. According to the rental platform, 12,979 properties have been withdrawn from the market, indicating that they are no longer available for rent.
The demand for already scarce rental homes far outmatches the dwindling supply. Last quarter, Pararius recorded an average of 42 responses to each listing. The pressure is even greater in the mid-market segment. “In this segment, encompassing properties with rents between €879.66 and €1,165.81 per month, an average of 84 responses were received per property in Q3 2024.”
Pararius blames the Affordable Rent Act, which took effect in July 2024 and extended rent regulation to mid-market rentals. “The unprecedented number of responses to affordable private sector rental properties illustrates the heightened competition among tenants. The current climate underscores the urgency of revising government policy to alleviate pressure on the rental market swiftly,” said director Jasper de Groot.
According to him, private and institutional investors want to meet the high demand but are unable to due to unprofitable rent regulations and imposed affordability requirements. He urged the government to act quickly. “The drying up of rental supply has severe consequences for population mobility and housing market dynamics as a whole.”
