Landlords selling rentals dampened home price increase; Prices up 6.2% in Q2

Landlords selling their rental properties had a clear effect on the Dutch housing market in the second quarter, according to the realtors’ association NVM. A record 52,000 homes went on the market in the second quarter of this year, dampening the price increase and increasing the number of transactions. Home prices rose by 6.2 percent compared to the year before, and the number of home sales increased by 15 percent, the NVM said in its quarterly report.

Landlords have been selling off rental properties as soon as the tenants move out for some time. Regulations like the Affordable Rent Act and higher taxes on property returns in Box 3 have made renting out properties less profitable. The increased supply of mainly smaller homes has resulted in home prices increasing less than in previous quarters. In the Amsterdam region, home prices even decreased slightly (-0.4%) for the first time, though the Dutch capital remains the most expensive city in the Netherlands.

The average transaction price in the second quarter was 495,000 euros, a year-on-year increase of 6.2 percent. In mid-2025, the annual increase in transaction prices was still 14.1 percent. Prices rose in the second quarter of this year because the market is still overheated, despite the increased supply, and higher wages improved buyers’ borrowing capacity.

A growing problem is a mismatch in supply and demand. “We’re currently seeing a lot of smaller apartments for first-time buyers, while there’s also a need for more affordable rental properties for households who can’t or don’t want to buy right away, and future-proof homes for seniors who want smaller or more comfortable living,” said Lana Goutsmits-Gerssen, chair of the NVM Housing division.

In the second quarter, NVM realtors sold 42,000 homes, almost 15 percent more than a year earlier. Apartment sales, in particular, are booming, with almost 23 percent more sales in one year. Due to the still tight supply, overbidding is still common on the market. On average, homes sold for 5.6 percent above the asking price this quarter.

The sale of newly-constructed homes declined year-on-year for the first time since 2023. Approximately 6,700 new homes were sold in the past quarter, 400 fewer than a year earlier. Prices remained stable at 475,000 euros on average.

Here, too, there is a mismatch between the type of home being built and what home seekers want, the NVM said. In the second quarter of 2025, over 9,900 new homes came onto the market. 48 percent of them were apartments, double the number five years ago. Apartments remain on the market for longer. 60 percent are on the market for over three months, compared to 36 percent of terraced houses.

“It is good news that more homes are coming onto the market, but we’re still mopping up the floor with the tap running if new construction doesn’t better meet people’s real needs,” Goutsmits-Gerssen said. “That is the key to improving the flow of new homes throughout the market.”

The realtors also raised concerns about there being too few construction projects in the pipeline. 61 percent of NVM realtors say that the supply in their region is still too low, and the number of building permits issued is lagging behind the required construction pace.

“We desperately need all the homes. And a Housing Minister who perseveres, ensuring that building sites actually become available more quickly and procedures are shortened,” Goutsmits-Gerssen said. “Moreover, we need to improve the investment climate so that investors are willing to invest in housing construction again. Otherwise, we'll continue to lag behind in the Netherlands.”