Housing costs are decreasing in the Netherlands, both for purchasing and renting

Statistics from the fourth quarter of 2022 show that the cost of buying a house in the Netherlands has fallen across all 12 provinces for the first time in nine years. The average price of existing owner-occupied homes decreased by 2.4%, with the most significant decrease in Utrecht (3.9%) and the smallest decrease in Limburg (1.2%). In North Holland and South Holland, popular areas for buyers, prices fell by 3.2% and 2.1% respectively. Even in cities like Utrecht, Rotterdam, Amsterdam, and The Hague, house prices have fallen by an average of 6.3%, 1.7%, 5.7%, and 4.2% respectively.

However, homeowners have yet to see these changes reflected in the official property value (WOZ waarde) of their homes, which has risen by 17% on average as of the beginning of 2023, according to the government body responsible for calculating the value. This increase is due to various factors such as location, type of home, and maintenance status.

In addition, the cost of renting also fell in the final quarter of 2022, with an average decrease of 1.1% per square meter for unregulated housing in the Netherlands. However, the overall supply of residential rental properties fell by 8.9%. In the five largest Dutch cities, including Amsterdam, Rotterdam, Utrecht, Eindhoven, and The Hague, rental prices continued to rise in 2022. Amsterdam experienced the most significant increase, with an average price per square meter of €25.75. Private landlords are selling their rental properties because they feel compelled to do so as renting properties will soon no longer be profitable, leading to a sharp increase in prices at the urban level.

These changes suggest that the housing market in the Netherlands is experiencing a period of correction after years of record-breaking price hikes, although it remains to be seen how long this trend will last.

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