Single-income first-time buyers can afford only 3.4% of Netherlands homes

Despite falling home prices, first-time buyers still have little chance in the Dutch housing market. An average single-income first-time buyer can only afford 3.4 percent of owner-occupied homes in the Netherlands, according to figures from appraisal company Calcasa. In almost half of the Dutch municipalities, they can afford less than 1 percent. Dual-income first-time buyers have a better chance and can afford nearly 40% of the available housing stock, NOS reports.

In the second half of 2022, home prices fell significantly for the first time since 2013. But they are still well above what an average first-time buyer can afford. The average price of a Netherlands home last year was 429,000 euros. People aged 25-35 with an average salary of 45,000 could get a mortgage of about 200,000 at an interest rate of four percent.

That means the average, single-income first-time has the best chance of affording a home in Friesland, Groningen, Zeeland, or Limburg. The provinces of Noord-Holland, Zuid-Holland, and Noord-Brabant are right out. “Actually, you can no longer enter certain areas at all as a first-time buyer,” said Tijs Pellemans of Calcassa

“First-time buyers’ position has only deteriorated in recent years,” Pellemans said. “Home prices are the main cause. They have risen much faster than incomes in the past five years and also much faster than interest rates fell in the beginning.”

First-time buyers who want to buy a home together - first-time buyers with two incomes - have a better chance. With an average mortgage of around 360,000 euros, they can afford almost 40 percent of homes in the Netherlands.

Pellemans expects the currently falling home prices to approve first-time buyers’ position in the housing market, but not significantly. “A lot is needed to make up for the increase of the past five years,” he said.