Dutch house prices rose 10.6% in February; Increases slowing down

The prices of existing owner-occupied homes on the tight housing market rose again last month, but slightly less sharply than in the previous months. According to Statistics Netherlands (CBS) and the Land Registry, homes cost an average of 10.6 percent more in February compared to the same month last year.

On average, buyers had to pay 467,363 euros for a home last month. The price increase was smaller than in January when homes became an average of 11.5 percent more expensive annually. In December, the increase was 10.9 percent. Compared to January, prices rose much less sharply last month at 0.1 percent

Home prices have been rising since June 2023 and have been breaking records each month for some time now. Last month, prices were, on average, 9.6 percent higher than the previous peak in July 2022.

Homes are becoming increasingly expensive because the demand for homes is still much higher than the number available for sale. Increased salaries and the decreased mortgage interest rate also allow buyers to borrow more for a home. De Hypotheekshop reported earlier this month that several mortgage providers had increased their mortgage interest again.

Despite the shortage, 16,356 homes changed hands last month. That is over 18 percent more than a year earlier, according to CBS and the Land Registry.

In order to reduce the housing shortage, the government wants to have 100,000 homes built per year. But that goal has been far out of reach in recent years, and that seems likely to continue in the coming years.

In addition, concerns have arisen in recent months about the consequences of the nitrogen crisis for housing construction. The Council of State ruled in December that available nitrogen space can no longer be shifted around during construction. All construction projects now require a nature permit. Trade association Bouwend Nederland announced last week that 244,000 homes cannot be built due to the nitrogen problem.