Netherlands running out of starter homes for first time buyers: report

First time home buyers are finding it increasingly difficult to find a home in the Netherlands according to De Hypotheekshop. Homes with price tags below 200 thousand euros are particularly running out, NOS reports.

In April a total of 35 thousand homes were listed for sale in the category of 100 thousand euros to 200 thousand euros. In April 2016 there were 55 thousand. The total number of homes is also declining, but the decline mainly affects so-called starter homes - apartments and houses in the above mentioned price class. "This is not only happening in overheated cities like Amsterdam and Utrecht, but also in Apeldoorn and the Hague region, for example", Mark de Rijke, director of De Hypotheekshop said to NOS.

The number of mortgage applications also saw a massive 20 percent decrease in April compared to March.

De Rijke calls on the national government and local governments to intervene before this turns into a crisis. "If we do nothing, the housing market will come to a standstill again, and that's very bad for the economy." he said. "New construction projects need to be moved up. Don't wait, act now."

The Dutch realtors association NVM estimates that there is a shortfall of about 200 thousand homes. "Over the past years too few were built", the NVM said to AD.