Buying a house is nearly impossible in large parts of the Netherlands for single-income Dutch households who earn an average income of 36 thousand euros, according to an analysis by mortgage adviser De Hypotheker. In the province of Utrecht, average single-income households can only afford 1 percent of the homes that are for sale, RTL Z reports.
The coalition parties in the Rutte III government reached broad agreements on the focus of the Netherlands' tax plans for next year. Low- and middle-income households must see an improvement in their purchasing power. And it must become easier for people starting out on the housing market to find a home, NOS reports.
"We have taken further steps on our way to Prinsjesdag", Prime Minister and VVD leader Mark Rutte said after an hours long meeting between the coalition parties and the Ministry of Finance, which ended at around midnight on Thursday.
In the second quarter of this year, 12.8 thousand permits were issued to build new homes - the lowest number in three years and 14 percent less than in the second quarter of 2018, Statistics Netherlands reported on Thursday. The permitted building sum for the new construction and renovations of homes was also nearly 15 percent less than the second quarter of last year.
The price difference in buying a home in the Netherlands' cheapest and most expensive provinces is now 175 thousand euros, according to economists at Rabobank. The average price of a home in Noord-Holland is 388 thousand euros, while the average price in Groningen is 213 thousand euros, NU.nl reports.
The average national rent increase in the second quarter of 2019 was the lowest since the second quarter of 2015. Rents in the Netherlands increased an average of 3.1 percent in the second quarter of this year, according to figures from Pararius. This clearly shows that the price increases are slowing down, the housing platform said, NU.nl reports.
Rent increases fell below 5 percent for the first time in 3.5 years in the last quarter of 2018. And that slowing down effect is continuing, according to Pararius.
Imbalances on the Dutch housing market pose the "biggest stability risk" to the Netherlands, Dutch central bank DNB said in its latest Financial Stability Overview. The central bank also warned that a "disorderly Brexit" and the trade war between the United States and China can seriously damage economic growth.
The prices of houses in the Netherlands are still rising, albeit less rapidly than before, and the housing shortage continues. This makes it increasingly difficult for the average Dutch person to be able to afford a house.
The wealth inequality between Dutch households decreased since 2015. That has to do with the improving housing market, Statistics Netherlands reported on Tuesday based on data from 2011 to 2017. Income inequality remained at basically the same level in that period.
Municipalities bordering the large Dutch cities are seeing large population growth, which means that rents in these municipalities are also rising sharply. In the first quarter of this year, free sector rents nationwide increased an average of 4.9 percent compared to a year ago, while some areas around the Randstad saw increases of more than 18 percent, rental broker Pararius said on Wednesday, NU.nl reports.
Expats and foreign students are a big driving force behind the spike in Amsterdam housing prices, ING's economic office said in a report. Housing prices in Amsterdam increased by an average of 70 percent since the low point on the housing market in 2013, compared to the national average of 30 percent.
The municipality of Amsterdam is working on implementing a rental ban on new owner-occupied homes, in an attempt to prevent new homes from being bought up by investors and then rented out for hefty sums, the municipality said in a press statement. The ban will not only apply to the first buyer, but also to the people who later buy the home.
After years of skyrocketing prices, the housing market in the Netherlands may be cooling down. In the last quarter of 2018, one in five municipalities saw home prices decrease compared to the previous quarter, according to the quarterly report of valuation company Calcasa. The price decreases mainly happened in Limburg and Groningen, RTL Nieuws reports.
Up until 2022 another 10,500 homes and rooms will be built for students and young people in Amsterdam and surrounding region - 9 thousand in Amsterdam and 1,500 in the surrounding municipalities, the city of Amsterdam announced.
The average selling price for a home in the Netherlands surpassed the 300 thousand euros mark for the first time in history. In January homes exchanged owners for an average of 302,157 euros, Statistics Netherlands and the Land Registry reported on Tuesday.
Compared to January last year, the price for an owner occupied home increased by 8.7 percent. The housing price increase is picking up. In December homes were 8.4 percent more expensive than the same month the year before.
The wealth of the median Dutch household increased significantly in 2017, rising by 6 thousand euros to 28,300 euros. This is mainly due to substantial price increases on the housing market, Statistics Netherlands reports. If homeownership is taken out of account, the median wealth increased only slightly compared to 2016 to 14,100 euros.
Statistics Netherlands looked at all the assets and debts of Dutch households. Savings and investment mortgages are not included in these figures as the stats office was not given access to that data. Pensions are also not included.
Housing corporations are unable to build as many homes as they want due to rising construction costs and a lack of locations, they said in a survey by housing corporations' association Aedes. New construction projects also regularly turn out to be financially unfeasible due to higher construction costs, they said, NOS reports.
Amsterdam housing corporations are struggling with housing fraud on a large scale. They estimate that between 10 and 20 percent of their 186 thousand homes are being illegally sublet, Financieele Dagblad reports after speaking with Ymere, Rochdale and Stadgenoot - the three large housing corporations in Amsterdam.
Over the past decades free sector rental homes have been too much of a "neglected child" in the Dutch housing market policy, Klaas Knot, president of Dutch central bank DNB, said in a speech on Monday. He called for more attention to be paid to this part of the housing market, ANP reports.
The price to rent a home in the Netherlands continued to rise in the second half of 2018. The average rent increased by 2.9 percent. The average price per square meter increased by 5.9 percent, according to realtors association NVM and real estate managers association VGM, ANP reports.
The Dutch housing market is still overheated, but is cooling down slightly in the most heated parts of the market, realtors association NVM concludes based on the sales figures for the last quarter of 2018. "In some regions and especially in Amsterdam we see that the ceiling of continuous price increases is slowly being reached", NVM chairman Ger Jaarsma said, NOS reports.
The madness on the Amsterdam housing market seems to have reached a new low point with an ad for a room for rent on Kamernet.nl, which RTL Nieuws discovered. The six square meter room was advertised for 878 euros per month. The ad has since been removed.
As the Dutch economy continues to improve, more permanent jobs will be offered in the Netherlands and contract wages at companies will continue to rise, according to Dutch central bank De Nederlandsche Bank (DNB), NU.nl reports.
The number of permanent jobs is already increasing, said Job Swank, director of financial stability at DNB. This year, contract wages are expected to rise by 2.1 percent, after they already rose 1.5 percent in 2018. For 2019 and 2020 the bank expects wage increases of 2.6 and 3 percent respectively.
The municipality of Amsterdam plans to construct 52,500 new homes in the next seven years, responsible alderman Laurens Ivens announced. The main risk for these ambitious construction plans may be the shortage of construction workers, he said, AD reports.
"The plans are there. Hopefully we can find enough construction workers and the state will cooperate", Ivens said while presenting the municipality's plans on Thursday. The city wants to build 7,500 homes per year in its period of government. The rest will be built in the years thereafter.
There is a considerable shortage of homes on the Dutch housing market. As a result, fewer homes are being sold for higher prices. And home sales are also happening faster and faster, according to figures released by the Dutch association of realtors NVM, NU.nl reports.
Amsterdam rose to the 5th place on Swiss bank UBS's ranking of cities with the highest risk of a house price bubble. In these cities home prices rose so fast compared to inhabitants' incomes, that there is a good chance that the housing market will collapse, Het Parool reports.
Hong Kong is first on the ranking, followed by Munich, Toronto and Vancouver. Amsterdam rose from 8th place last year to 5th this year, passing Sydney, London and Stockholm.