The housing shortage in the Netherlands will continue to rise until 2020 according to new data from Capital Value produced in cooperation with ABF Research, which reports that earlier projections that the shortage would peak in 2018 have been revised.
'The motto should not just be 'build, build, build',' commented Kees van Harten, managing director of Capital Value. 'In order to eliminate the shortages in a future-proof manner, it is very important that the constructions be demand-driven. When making plans, it is important to look critically at who we are building for (target group), in which segment more homes are needed (owner-occupied or rental) and in which region, also taking into account future demographic developments.'
The data suggests that while around 65,000 building permits were issued for 2017, the growth in the number of households was the highest in 10 years (+82,000). At the start of 2018 the shortage amounts to around 205,000 homes, rising to a potential 235,000 in 202. The Randstad and parts of Gelderland and Brabant are expected to be hardest hit.
According to the research, there could be a shortage of as many as 235,000 homes in the country by 2020 as construction levels remain insufficient to close the gap between supply and demand. Capital Values suggest that starters and senior citizens are in particular trouble as both groups will grow considerably in the coming years.
More owner-occupied dwellings and mid-priced rental dwellings are required, while in the mid-priced rental segment, annual demand exceeds supply by an estimated 83,000.
Only from 2020 are new homes likely to exceed rising household figures.
'The upcoming local government elections can play an important role in reducing the housing shortage,' added Marijn Snijders, managing director of Capital Value.
'Coalition negotiations should not lead to delays in town and country planning procedures. Municipalities must include the mid-priced rental segment as top priority during the coalition negotiations. In addition, municipalities will also have to accept lower land prices if they want to secure non-regulated and mid-priced rental dwellings in their district,' Snijders concluded.