Young people spending nearly half their income on rent as social housing gets scarcer

Young adults in the Netherlands are spending an increasing share of their income on housing, driven largely by a shortage of social rental and affordable homes, according to recent research by ING. Private rental prices have risen faster than young people’s incomes, forcing many to allocate nearly half their earnings toward rent.

In 2024, tenants under 35 renting privately paid on average 46 percent of their income—about 1,185 euros per month—toward housing costs. This marks a sharp increase from 2015, when the figure was 39 percent, ING housing market economist Sander Burgers explained. “It has increased significantly over the last decade,” Burgers told Nu.nl.

By contrast, young people living in social rental housing paid far less on average: 680 monthly euros, or 31 percent of their income in 2024. This share is down from 36 percent in 2015, indicating some relief in social housing affordability. Still, many young adults who qualify based on income face a lack of availability in the social rental sector, Burgers said.

“The pressure on social rental housing has grown steadily,” Burgers noted. “Over the past ten years, the number of social rental units has grown by less than 1 percent, while the number of households under the social rent threshold has increased by 10 percent.” At the same time, the private rental market is also tightening, which could push rents even higher, Burgers warned.

The Amsterdam region shows the highest rent burden for young private renters, with average housing costs consuming more than half of their income. However, this trend is nationwide, with young renters across the Netherlands approaching an average of 46 percent of income going to rent, Burgers said.

Young adults who own their homes pay the smallest share toward housing costs—28 percent of their income. Burgers noted that homeownership among young people has increased slightly compared to the previous year. “For those with relatively high incomes who prefer to buy, this is a good time,” he said. “But if your preference is renting, it has become much harder.”