Sharp drop in permits issued for housing construction

Permits issued for housing construction dropped by a massive 22 percent in the first quarter, compared to a year earlier, Statistics Netherlands (CBS) reported on Thursday. The number of newly constructed homes completed and delivered in the first quarter was about the same as last year.

In the first quarter of this year, construction permits were issued for 12,500 new homes - 3,500 fewer than in the same period last year. Compared to the fourth quarter of 2024, the decrease was 7,700 (-38 percent).

Construction permits are a good indicator of how many new homes will be built in the coming years. CBS economist Peter Hein van Mulligen spoke of disappointing figures. One quarter’s results are not conclusive for the entire year, he said. “But the year has not started well.”

He could see no easily identifiable cause for the sharp drop, but suspects that the changed rules in the rental market play a role. Many landlords have complained that it is no longer profitable to invest in new homes.

15,600 newly constructed homes were completed and delivered in the first quarter, the same number as a year earlier. Homes can also be created or lost through renovations, mergers, divisions, and demolition. In the first quarter, 2,300 homes were demolished, 1,600 homes disappeared through renovations, and 4,700 homes were added through extensions or additions. In total, 16,300 homes were added to the Dutch housing stock in the first quarter.

The Netherlands currently has a shortage of over 400,000 homes, and that number is expected to increase to 453,000 by 2027. To alleviate the shortage, the government wants to realize 100,000 new homes per year. It has never reached that target. And at only 16,300 homes added in the first quarter of this year, 2025 will likely miss the mark too.