Number of completed newly-built homes at lowest level since 2018

The number of completed new homes has dropped to its lowest level since 2018 in the first six months of this year. Almost 32,700 new homes were added to the housing stock, compared to over 34,000 in the same period last year, according to new figures from Statistics Netherlands (CBS).

The number of permits issued for housing construction has decreased in recent years, CBS chief economist Peter Hein van Mulligen explained. This translates into fewer new homes being built 1.5 to two years later. That effect is now visible.

The Netherlands has a major housing shortage, and that is why there is a strong focus on building new homes. However, to date, it has proved impossible to achieve the housing construction targets. There are various obstacles in the construction process, such as the scarcity of building land and staff shortages in municipalities.

“If we want to reach 100,000, we need to step it up a notch in the second half of the year,” said Van Mulligen, referring to this and the previous government’s ambition to build 100,000 homes per year.

The economist said that to achieve the government’s goals, homes will have to be added in ways other than new construction. This can include splitting up existing homes or transforming offices. Homes will also disappear, for example, through demolition or because they merge.

Housing corporations delivered more new homes in the first half of the year. Of the new homes constructed, over 8,200 came from corporations, a quarter of the total. In the first half of last year, housing corporations’ share of new homes was still 18 percent.

The corporations’ share in new construction grew because the total number of new homes was lower in the first half of the year. But also in absolute numbers, corporations delivered more new homes than in the first half of last year.

CBS noted major differences between municipalities. In a few municipalities, like IJsselstein and De Bilt, corporations built all of the new homes. In Leiden, on the other hand, over 500 new homes were built and delivered, but none of them came from a housing corporation.