More Millennial homeowners are moving up the property ladder
More and more young homeowners are moving up to bigger homes. Millennials are currently the driving force behind flow in the housing market, De Hypotheker reported. The number of mortgage applications for new home purchases among existing homeowners aged 25 to 35 has risen by 46% year-on-year in the past quarter, and a full 27 percent of everyone moving up the property ladder came from this age group.
Over the past three months, the total number of mortgage applications from homeowners moving up the property ladder increased by 20 percent compared to the same quarter in 2024. The 25 to 35 age group saw by far the largest increase. Applications from 35-45 year olds increased by 16 percent, 44-55 year olds by 6 percent, and over 55 year olds by 12 percent.
According to De Hypotheker, many of the Millennials moving up the property ladder are ready for larger homes due to life changes, such as a growing family or a new job. And many can currently afford the move due to rising incomes, equity in their current homes, and often being able to transfer a favorable mortgage rate to a new home. Furthermore, a large group of young homeowners up to the age of 35 can still benefit from transfer tax exemptions.
Due to these advantages, the average mortgage for 25 to 35-year-olds moving up the property ladder was €413,000 in the third quarter, 11 percent higher than for the average home buyer.
“It’s positive that a large group of young homeowners can move to a new home. An added benefit is that this has a positive impact on the flow of new homes throughout the entire housing market,” said mortgage advisor Jilles Bouter of De Hypotheker Rotterdam. “Young homeowners typically leave behind small starter homes, which are in high demand. They also create flow in the mid-market segment, which can also boost the housing market.”
De Hypotheker stressed that this group still faces challenges in the housing market. Home prices remain high, and the limited housing supply continues to generate significant overbidding.
The Netherlands needs to build more homes. “In particular, the construction of suitable new homes that better meet the housing needs of homebuyers, such as smaller affordable homes for first-time buyers and future-proof homes for seniors, can further stimulate the flow,” Bouter said.
