Netherlands Rental Housing Supply Dwindles as New Contract Rents Skyrocket

Discover the latest trends in the Netherlands rental market as supply decreases and rents for new contracts reach unprecedented heights.

The Netherlands rental market is experiencing significant changes, as revealed by new research from housing platform Pararius. The study shows that the number of rental homes not subject to strict income rules has decreased by a third compared to last year. This has led to a decrease of almost 7,000 rental properties available for home hunters on the Pararius website, resulting in a sharp increase in rental prices.

According to the research, rents for new contracts have risen by almost 10% on average, with tenants now paying an average of €18.79 per square metre for a rental property. In cities like Amsterdam, average rents have increased by 3.8% to €27.57 per square metre. The Hague and Rotterdam have seen an 8% increase in new contract rents, while Utrecht experienced a 2.1% rise. However, in Eindhoven, rental homes offered through Pararius have become slightly cheaper compared to a year ago.

These trends highlight the ongoing pressure on the Netherlands rental market, with almost 8% of properties up for sale in the second quarter previously being rented out through the Pararius website. This increase from 7% in the first quarter is attributed to new government regulations that have made it less attractive for landlords to rent out smaller homes. Rent controls now cover 90% of the rental market, and landlords are facing higher taxes. Additionally, two-year contracts, commonly used by landlords, have been banned as of July 1.

The decrease in available rental properties and the rise in prices underscore the challenges faced by both tenants and landlords in the current Netherlands rental market landscape. These changes are a result of new regulations and market dynamics that are reshaping the rental housing sector in the Netherlands.