AI-based startups have taken the world by storm, and the Netherlands is no different. In the minds of some young entrepreneurs, this controversial new tool could even be used to help tackle one of the country’s stickiest problems.
The land of clogs has been at the centre of housing debates for years now, thanks to acute shortages and steep prices.
The Dutch housing crisis has a variety of causes, and what’s most relevant depends on who you ask. The only consistently clear element, though? Too much demand, too little supply.
So if you ask most national policymakers, the solution to this nationwide issue has to involve building new homes.
That’s where AI startups want to lend a hand. But should they?
Bureaucracy… Always a mess, right?
While there are a million reasons why housing is difficult to build in the Netherlands, the frustratingly slow process often comes down to permit and regulatory issues.
According to Politico, in some cases, work takes years to begin. In their report, a project in Veldhoven (hi ASML!) saw actual construction start seven years after the first permit submission.
The reality is, these regulations and reviews often exist for very good reasons. Environmental reports need to be prepared, and impact research must be conducted to create housing within the guardrails of sustainability and convenience.
But at the current rate of demand increase, most places in the Netherlands simply can’t afford to wait that long, RTL reports.
READ MORE | People in the Netherlands are spending a ridiculous amount of their income on housing
So, some startups have approached the problem from a new angle: greasing the gears of efficiency with a little AI.
How does this work?
Startups like Struck and Haaven advertise their services as solutions to navigating the complex process of building in the Netherlands.
Struck focuses on “simplifying compliance,” according to their website. They’re using AI to decode zoning plans and navigate local and national regulations, depending on what you want to build (and where).
Haaven functions more as a guided platform that integrates different actors and customers in the construction field.
Here, AI is used to review regulations and to retain user data. As a result, they can identify what is needed to move a project forward. This also makes it easier to connect the right people.
It’s highly innovative — often bringing together architects, city planners, construction companies, and legal teams into one hub.
Their approaches might come from different angles, but the desired result is similar: easier construction processes in the Netherlands.
So what’s controversial about it?
A band-(AI)d on a bigger issue
These AI start-ups certainly address the short-term need to build more quickly, but do they get to the root of the problem?
The continued stimulation of housing demand and the shift away from direct state-led housing construction toward market mechanisms have created an unsustainable environment in the Netherlands that goes beyond a general supply shortage.
READ MORE | This Dutch political party wants to build a whole island for 60,000 new houses
What happens once the housing is built? How is affordability maintained? And how do we ensure the right people have access to these new living spaces?
While these companies can help guide customers through the process, they don’t have any interest in the welfare aspects of the housing crisis.
There’s also an issue of over-permitting: according to RTL, actual construction is struggling to keep up with the number of accepted building proposals.
Not to mention, even if new housing is built more quickly, if it’s done unsustainably or constructed poorly, we’re all worse off.
It seems that until the government returns to a more involved role in the housing market, it’s unlikely these startups will solve the long-term issues facing the Netherlands.
So is AI just being over-hyped once again?
What do you think of these startups? Let us know in the comments.
