Rental sell-off increasing inequality among young adults starting in housing market

Investors’ large-scale sell-off of former rental properties is increasing inequality among young adults entering the housing market, according to a study by the realtors’ association NVM. While the sell-off is benefiting young first-time buyers, lower and middle-income earners are falling further behind. It takes more savings than these groups have to afford to buy a home, and there are fewer and fewer rentals available in their price range, the realtors said in a press release.

"These findings underscore that the rental sell-off leads to new bottlenecks and that policy choices are necessary for a better functioning and more balanced housing market," said Lana Goutsmits-Gerssen, real estate agent and chair of NVM-Wonen. "It increases inequality among first-time buyers and contributes to a growing divide between those who can buy and those forced to continue searching in an increasingly tight rental market."

Last year, one-in-six properties sold by NVM realtors was a former rental. These properties are often smaller, cheaper apartments, aligning well with the housing needs of many first-time buyers. In 2025, a record 75,000 first-time buyers bought a home through an NVM realtor.

But not every young person stuck living with their parents is benefiting. ”The research shows that the additional opportunities are very unevenly distributed,” the NVM said.

To buy a single-family home with a median price of €400,000, you need a gross annual income of approximately €84,500 for full financing. To rent that same home, an income of approximately €53,500 is required, the NVM calculated. “That difference of over €30,000 creates an unbridgeable gap for many people entering the housing market,” the NVM said.

According to the realtors, the contrast is even greater for homes that would fall into the regulated mid-market sector under the Affordable Rent Act, the law that triggered the mass sell-off by investors. While renting these units would require an income of approximatley €37,000, buying them requires around €77,000.

The mass sell-off of rental units also had a significant impact on the rental market. The number of private sector rental transactions was 38% lower at the end of 2025 than a year earlier. In the four large cities, the number of mid-market rented properties even fell by between 50 and 70 percent. The sharply diminishing supply means that private sector rents are rising faster than ever. Last year, the annual rent increase amounted to almost 10 percent, averaging at €1,660 per month.

In 2025, first-time buyers brought an average of €45,000 of their own money to the table, making buying a home barely feasible for many single people who don’t have savings or financial support from family.

“Where a middle-income earner could previously rent a home, suddenly an income of 1.5 to almost twice the modal income is needed to buy. This widens the gap between first-time buyers with and without a financial buffer,” Gerssen said. “Lower- and middle-income earners are seeing their opportunities evaporate. Those with assets can get in and build further. Those without are left behind.”