Private sector rents rising faster than inflation as supply plummets
The number of available rental homes in the private sector fell by a massive 35.5 percent in the first quarter of 2025 while demand increased by 47 percent, compared to a year earlier. The average square meter rent for a private sector home increased by 9.6 percent, housing platform Pararius reported based on its own data and data from other public sources. “For the first time in a long time, rental prices in the private sector rose faster than inflation in the past quarter.”
The average rent for a private sector home was 1,781 euros per month in the first quarter. That means you need to earn a gross monthly income of over 5,340 euros to afford rent, according to Pararius. That is well above the modal income of 3,458 euros gross per month, excluding holiday pay. “The private sector remains out of reach for a large group of households. Rising rents mean that many home seekers are missing out because their income is simply not sufficient.”
In the first quarter of this year, 12,677 private sector properties became available to rent throughout the Netherlands, a decrease of 35.5 percent compared to Q1 of 2024. On average, 47 people responded to each rental property that came onto the market. That is 47 percent more than a year ago, when each available property received an average of 32 responses.
According to Pararius, the greatest imbalance between supply and demand is still in the cheapest free sector segment, with rents between 1,185 and 1,500 euros. “This segment received 44.2 percent of all responses while it represents 30.1 percent of the supply,” Pararius said. This segment is the only part of the private sector that is still somewhat affordable for many households and is the only option outside regulated rent.
The middle segment, with rents between 1,500 and 2,000 euros, is also starting to show signs of tension, the housing platform reported. Last quarter, this segment received 37.5 percent of responses while it covered 33.4 percent of supply. “In previous quarters, supply and demand in this category were still virtually equal. This shift indicates that tenants - mainly forced by shortages or price increases in the lower segment - are shifting their focus to more expensive homes.”
In the highest segment, with rents above 2,000 euros, the market has plenty of room. This segment accounts for 36.5 percent of the supply, but only received 18.3 percent of the responses in Q1 of 2025. “This indicates that this part of th emarket remains out of reach for most home seekers,” Pararius said.
