Housing construction dip: Only 82,000 new homes created last year

Last year, approximately 82,000 homes were added to the Netherlands’ housing stock through new construction or the renovation of other buildings. That is not only lower than in the previous six years but is also far from the target of 100,000 new homes per year. Nevertheless, “the dip in housing construction is slightly smaller than expected,” according to the State of Public Housing of the Ministry of Housing and Spatial Planning. “But the construction rate must increase further.

The construction dip is mainly the result of high interest rates and rising costs of building materials, among other things. It is expected that too few homes will also be built this year and the 100,000 per year target won’t be reached until 2027. A production of 100,000 homes per year is important to tackle the housing crisis and is also an agreement in the coalition agreement.

“The housing shortage remains high. Measures that we are now implementing will not bear fruit for a few years at the earliest,” said Housing Minister Mona Keijzer. She is mainly focusing on “removing obstacles to new construction, such as the accumulation of local rules and procedures.”

A potentially serious setback is a ruling by the Council of State at the end of last year. If a company with a new project - or an expansion - is going to emit nitrogen, it must apply for a permit again. Even if the nitrogen space was already permitted. The ruling is a new headache for the Cabinet.

On Thursday, parliament will debate with Keijzer about public housing, during which the consequences of the Council of State ruling will also be discussed extensively.