Homeowners’ financial situation deteriorating; More middle-incomes struggling: NHG

Homeowners’ financial situation is deteriorating, according to the National Mortgage Guarantee (NHG) fund’s latest Housing Costs Monitor. More homeowners are struggling to cover their housing costs, and an increasing proportion of them are not low-income households, but people with middle incomes, the NHG reported on Thursday.

In the monitor published today, 8.8 percent of homeowners indicated that their income was insufficient to cover their expenses, up from 5.8 percent in the first monitor in 2024. The proportion of households struggling to pay their housing costs increased from 3 percent to 4.3 percent during that period, and those who report having a mortgage payment arrear at least once rose from 5.3 percent to 7.3 percent.

In previous measurements, the NHG saw mainly low-income households struggling to cover their costs. But middle-income households and young homeowners are now also reporting experiencing financial pressure. The number of middle-income households struggling to make ends meet more than doubled, from 4.4 percent in 2024 to 9.2 percent in this monitor. Young homeowners saying the same increased from 12 percent to 23 percent.

“Whereas previously a defined group experienced problems and was financially vulnerable, this is now also affecting households that were previously considered financially stable,” the NHG said. The fund pointed out that this measurement was done before the war in Iran started and energy prices began skyrocketing.

The monitor also shows that 48 percent of homeowners plan to make their homes more sustainable in the coming two years. “A key reason is lowering energy costs (81 percent),” the NHG said. Of those who don’t plan to take sustainability measures, 41 percent cite the high costs.

According to the NHG, many people considering sustainability measures are confused about costs, savings in energy bills, and the payback period. “By making sustainability more accessible and understandable, we can contribute to lower housing costs as well as a more sustainable housing stock,” NHG director Roald van der Linde said.

He added that “government predictability” is an important factor in people’s willingness to take costly measures to make their homes more sustainable.