If you have ever had to deal with the Dutch housing market, whether as a renter or a buyer, you’ll know that the situation is, well… bleak.
How bleak, you ask? Calcasa, a company that specialises in the analysis of the Dutch real estate market, has crunched the numbers to find out how much income is required to buy an “average” house in the Netherlands.
And the results are… discouraging. 😬
More than two average salaries needed
To get to its final number, Calcasa based its study on a dual-income household with no student debt, no deposit of their own money, and a house with energy labels E, F, or G.
They also took into account the current average mortgage interest rate of 3.75% without NHG (National Mortgage Guarantee) and 3.25% with NHG.
READ MORE | Why is there a housing shortage in the Netherlands? The Dutch housing crisis explained
Considering that the average price for a home in the Netherlands is €452,000, the household type above would need to earn an average of a whopping €95,000 gross per year to be able to afford one of them.
If you want to purchase in Amsterdam, that number climbs to €120,000.
READ MORE | Salaries in the Netherlands: the ultimate guide to Dutch wages
Here’s where it gets good (…not): According to the Dutch Central Planning Bureau, the expected average Dutch annual salary in 2024 will stand at €42,236.
So, yes, even two average salaries would not be sufficient to buy an average home in the Netherlands. 😓
Income requirements vary by municipality
As with everything, there are big differences between the municipalities when it comes to housing prices.
Taking the crown for the least affordable municipality in the Netherlands is not Amsterdam (shocker), but instead the municipalities of Bloemendaal, Laren and Blaricum.
READ MORE | Buying a house in the Netherlands: extra costs you need to know
Never heard of those places? You’re not alone. Yet still, the average value of a house in these municipalities is above €1 million, and you’d need to make more than €200,000 a year to afford one of them. 😳
Curious how much money you need to earn to go from renter to owner in your municipality? Check out the numbers for the 20 biggest Dutch municipalities. 👇
| Municipality | Required income |
|---|---|
| Amsterdam | €120,000 |
| Haarlem | €107,000 |
| Haarlemmermeer | €105,000 |
| Utrecht | €103,000 |
| Amersfoort | €100,000 |
| ‘s-Hertogenbosch | €95,000 |
| Breda | €94,000 |
| Leiden | €93,000 |
| Apeldoorn | €87,000 |
| The Hague | €86,000 |
| Eindhoven | €86,000 |
| Nijmegen | €86,000 |
| Almere | €84,000 |
| Zaanstad | €83,000 |
| Zwolle | €84,000 |
| Rotterdam | €81,000 |
| Tilburg | €81,000 |
| Arnhem | €77,000 |
| Groningen | €73,000 |
| Enschede | €71,000 |
Would you ever consider buying a house in the Netherlands? Share your thoughts in the comments!
I was born in 1963 and housing was always a problematic issue. Squatting became popular in the 1980s, but also rental conditions became one of the best in the world. Long term contracts and the ability to perform your own interior decoration and renos are an unicum. Never heard of in Australia for example. Interest rates in Australia are 6% and not 3.25-75%. And yes, first home buyers are not in the market.
Coming from an unaffordable region to ever buy a house in, even with a good salary (that is, California in the US), even though this average makes things difficult for most, it seems to me to be more reachable and possible than in many other places in the world. And the fact that renting and buying are not abysmally different for the cost.
I guess I have to win the lottery first!