Dutch Housing Market Surprisingly Affordable, Experts Say

Despite rising house prices and the widespread belief that homeownership in the Netherlands is increasingly out of reach, a recent Housing Market Monitor from ABN Amro sheds light on an encouraging fact: the Dutch housing market remains one of the more affordable in Europe. Yes, really!

Here’s what you need to know.

A Decade of Growth, But Still Competitive

It’s true that house prices in the Netherlands have surged by 48% over the past ten years. But when you compare this to other European countries like Portugal (+85%) or Hungary (+80%), the Dutch market suddenly seems more reasonable.

Where does the Netherlands stand overall? According to economist Mike Langen, “The Netherlands is one of the more affordable purchase markets in the EU.” While the EU average house price increase sits at 32%, some countries (looking at you, Finland and Italy) have even seen prices drop.

It’s Not the Shortage….

Many people point to housing shortages, but the real culprit driving up home prices is rising incomes. Over the past decade, Dutch net earnings have jumped by 36%, giving buyers more spending power. Pair that with historically low interest rates and generous housing subsidies, and it’s no surprise that more people are entering the market.

Stable Affordability, Even Today

The good news? Despite price increases, housing affordability in the Netherlands has stayed relatively stable. This is thanks to growing wages and favorable Dutch mortgage rates.

Here’s how it breaks down:

• Couples spend about 29% of their income on mortgage payments.
• Singles pay around 40%.

Compared to other European countries, these figures are still on the lower end.

What’s Next for Buyers?

No one’s saying housing in the Netherlands is cheap, but compared to countries facing dramatic affordability crises, the Dutch market is holding its ground. With stable Dutch mortgage rates, and opportunities driven by income growth, homeownership is more achievable than headlines might have you believe.

Thinking about purchasing? It seems the Dutch housing market might just make sense. To learn more about Buying a property in The Netherlands, do checkout this housing webinar in cooperation with Welocate on May 22nd