Financial limits threaten new affordable housing construction, social housing firms say

Housing corporations caution that they are approaching their financial limits. “If the financing model isn’t revised in time, new housing construction will come to a halt,” says Liesbeth Spies, chair of the umbrella organization Aedes, while presenting the annual figures. The former CDA Minister of the Interior considers this an issue that the new Cabinet must address.

The data show that housing corporations are spending beyond their income, which Aedes warns is not sustainable over time. Maintenance and sustainability expenses increased by more than 15 percent last year, surpassing 12 billion euros.

Tenant rents remain nearly the sole source of income for housing corporations. In 2024, the average rent for a corporately owned home was 595 euros per month, with corporations covering an average shortfall of 48 euros per property. In 2023, the monthly subsidy per home was just 11 euros.

Housing corporations have taken measures such as insulating homes, installing solar panels, and installing heat pumps. "Over 1 million corporately owned homes now have an energy label A or higher. Yet we recognize that much remains to be done,” says Spies. “We must accelerate efforts to upgrade homes with labels E, F, and G.”

The housing corporations demonstrated strong growth in new construction, completing 21,761 homes this year, up from 17,801 in 2023, according to Aedes. Spies stresses that maintaining this growth in the years ahead is crucial.

Housing corporations have increasingly turned to borrowing to cover expenses. In 2024, the average debt per home was 216 euros per month, over four times higher than three years ago.

Spies urges the next Cabinet to ensure long-term stability in the housing corporation sector. “The first step should be to eliminate the profit tax for housing corporations,” she proposes.

Aedes warns that, without long-term measures such as reduced taxes or government financial support, housing corporations’ ability to invest will stall. “In the midst of the current housing crisis, the Netherlands simply cannot afford this,” the organization says.