Dutch Homeowners Face Steep Rise in Housing Costs in 2024, COELO Report Finds

COELO report from RUG shows Dutch homeowners will pay 1,670 euros on housing costs this year, up by 118 euros from 2023 due to increased municipal taxes and water board payments.

Dutch housing costs have seen a significant increase this year, particularly for homeowners, according to a report by the Center for Research on the Economics of Local Authorities (COELO) at the University of Groningen (RUG). The report reveals that homeowners will spend an average of 1,670 euros on housing costs this year, which is 118 euros more than in 2023. This increase is attributed to higher spending on municipal taxes and payments to the water board.

On the other hand, renters will also experience a rise in housing costs, with an average increase of 72 euros compared to last year, bringing their total spending to just under 1,000 euros. Half of this increase will go towards payments to the water board, 27 euros to the municipality, and the remaining 9 euros to the province. COELO notes that homeowners tend to spend more on municipal taxes than tenants, as only homeowners are required to pay property tax (ozb) to the municipality.

Furthermore, there is a discrepancy in the levies paid to the water board, with some municipalities exempting tenants from sewer taxes. Statistics Netherlands (CBS) reported in January that municipalities are expected to see an 8.5 percent increase in taxes and fees this year compared to the previous year, totaling 13.3 billion euros. Property tax alone is projected to bring in 5.5 billion euros, a 7.5 percent increase from the previous year, largely due to higher official WOZ property valuations.

The rise in Dutch housing costs, particularly for homeowners, is a notable trend this year, driven by increased spending on municipal taxes and payments to the water board. Renters are also experiencing an increase in Dutch housing costs, albeit to a lesser extent. Municipalities are expected to see a significant increase in tax revenue this year, with property tax playing a significant role in this growth.