Dutch affordable housing policy fails to boost overall affordability, new study finds
Government efforts to boost affordable housing construction have failed to increase the overall share of affordable homes across the Dutch housing market, according to a new study by the Economisch Instituut voor de Bouw (EIB). The findings, released Tuesday, show that even targeted construction policies have little impact when accounting for project delays and limited mobility within the market.
The study finds that current affordability policies—designed to push for larger shares of low-cost units in new developments—do not translate into broader affordability gains across the national housing supply. The EIB notes that the minor attrition of projects due to policy conditions and the limited effect on market turnover reduce the effectiveness of these strategies.
“Effective affordability policy creates more opportunities for second-time buyers within new housing development plans,” the report states.
While rent control measures initially help improve affordability, the report warns they create significant market distortions. According to the EIB, the core problem is not the practice of selling off formerly regulated units, but the near disappearance of a functioning unregulated rental market. This imbalance undermines flexibility and access, especially for middle-income renters who do not qualify for social housing but also cannot afford ownership.
The EIB says real improvements in housing affordability will only come from expanding construction across all price ranges. Focusing solely on low-cost homes limits overall supply and blocks movement in the housing market, leaving many residents stuck.
More homes for “doorstarters”—people moving on from their first homes—would reduce pressure throughout the system.
