Netherlands again misses construction target; Fewer homes built for 3rd year

For the third year in a row, the Netherlands added fewer homes to its housing stock in 2025. Construction continues to lag behind the government’s plans, and the housing shortage remains insufficiently addressed, according to new figures from Statistics Netherlands (CBS).

According to the statistics agency, nearly 80,000 homes were completed, compared to over 82,000 in 2024. The government had previously set a target of 100,000 new homes per year.

Of the nearly 80,000 new homes, 69,000 were new construction. A total of 11,000 homes were created through home conversions, for example, by combining or subdividing existing homes. 9,500 homes were demolished. Ultimately, the housing stock increased by 70,000 to 8.3 million homes.

Due to the tight housing market, it has been very difficult for many people to find a new home for some time now. Home prices have risen sharply, and homebuyers are often bidding well above the asking price.

CBS chief economist Peter Hein van Mulligen says the dip in construction can be explained in part by labor shortages in the construction sector. He also believes the disappointing figures are related to previously issued building permits. “Before 2024, a relatively low number of permits was issued. This may predict the construction figures a few years later, which is what we are seeing now.” In 2023, 73,000 construction permits were issued. This number rose to 94,000 in 2024 and fell to 86,000 in 2025.

The only way to reduce the housing shortage is to build more homes, the economist said. “Housing conversions only create 10,000 to 15,000 new homes per year, so the majority must come from new construction.” He believes that shortening the lead time between permits and completion would help.

In December, caretaker Housing Minister Mona Keijzer (BBB) said that the target of 100,000 new homes per year by 2025 would likely remain out of reach. There was still “work to be done,” she said. “Unfortunately, we are not yet building the number of homes we need, and the significant shortage remains significant. Nevertheless, the outlook is improving.” The Minister relaxed regulations and procedures for new construction, among other things.

Of all the provinces, Noord-Holland saw the most new homes completed. 14,000 homes were added there last year. Drenthe and Friesland were at the bottom of the list. Both provinces saw 1,300 new homes added.