The Netherlands is still one of Europe’s more affordable housing markets, despite what the headlines (and that one relative’s Facebook posts 😉) may say.
That’s one of the key conclusions from ABN Amro’s latest Housing Market Monitor, which compares the Dutch housing situation to the rest of Europe.
Turns out, things may not be as bleak as we think. Let’s take a closer look!👇
Dutch housing is still relatively affordable
It’s plain to see that Dutch house prices have gone up. But compared to the rest of Europe? We’re not exactly topping the charts. 👀
Over the past decade, prices in the Netherlands have risen by 48%. That sounds steep, until you look at Portugal (where prices have shot up by 85%) or Hungary (where they’ve risen by 80%).
READ MORE | How much do I have to earn to buy a house in the Netherlands?
The EU average is lower, hovering around a 32% increase, but that’s because some countries like Finland, Italy, and Romania have seen their house prices drop.
In conversation with AD, economist Mike Langen sums it up: “The Netherlands is one of the more affordable purchase markets in the EU.’’
It’s not the shortage, it’s your salary
You’d think skyrocketing prices are about not enough homes and too many people, but that’s only part of the picture.
Although the Dutch population grew by 6.2% over the past decade, this increase has been modest compared to countries like Malta or Ireland.
The real driver? Rising incomes. Dutch net earnings have jumped over the last ten years (36%), giving buyers more spending power, especially with low interest rates along the way.
READ MORE | Salaries in the Netherlands: the ultimate guide to Dutch wages
Add generous housing subsidies, and more people can buy their own homes. While helpful for buyers, it’s also helped push prices up. 📈
How affordable is affordable?
Despite rising prices, housing affordability in the Netherlands has remained relatively unchanged over the past two decades.
Thanks to growing wages and deductions in mortgage interest, the price-to-income ratio of Dutch properties has stayed relatively stable.
READ MORE | What does the future of the Dutch housing market look like? We sat down with a mortgage expert
What does that mean for monthly costs? Well, couples spend around 29% of their income on mortgage payments, which jumps to about 40% for singles.
However, these figures are still on the lower end compared to much of Europe.
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