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Over the next ten years, 845,000 new homes will be needed to make up for the shortage

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Over the next ten years, 845,000 new homes will be needed to make up for the shortage

Market 2020. The report lists the most important developments in the housing market of the past year. One of the main goals of the State of the Housing Market 2020 is to keep housing production going. Only in this way can the growing demand be met while at the same time eliminating the housing shortage.

There is currently a shortage of 331,000 homes. That is 4.2 percent of the total housing stock in the Netherlands. According to the report, this should be reduced to 2 percent by 2035.

According to Minister Ollongren, the demand for housing will only increase in the coming period, partly due to the growing number of residents in the Netherlands. The Netherlands is expected to have 18.8 million inhabitants in fifteen years. The report also shows that starters, middle-income people and vulnerable people in particular are currently struggling to find something suitable.

Due to, among other things, the nitrogen problem, exposure to PFAS (chemicals) and because there are too few construction sites, the production of new-build homes will drop sharply, from 71,500 in 2019 to an expected 55,000 in 2020. In 2021, production is expected to decline further. to 50,000. After that, the situation should slowly recover.

 

Corona crisis makes people more reticent

The report also examines the consequences of the corona crisis for the housing market. The crisis fears that people will be more reluctant to buy a home. Investors and developers may be less likely to invest in new-build homes, Ollongren thinks.

It now looks like housing demand has indeed declined since the outbreak of the coronavirus. According to the minister, the previous crisis in 2008 also shows that the consequences for construction during a crisis can last for a long time.

In the next ten years, 845,000 new homes must be added to prevent the housing shortage from rising further. That is one of the main conclusions in the State of the housing market 2020 of the Ministry of the Interior. The annual report contains the most important developments in the housing market of the past year. The report was presented to the Lower House by Minister Olongren.

At present, there is a shortage of 331,000 homes in the Netherlands, 4.2 percent of the housing stock. The aim is to reduce this shortage to 2 percent in 2035. Since the Netherlands is expected to have around 18.8 million inhabitants in that year, not only will many homes be built in the coming years to make up for the shortage, but also to meet rising demand.

71,500 new-build homes were built in the past year. In addition, another 10,000 homes were created by converting existing buildings. In 2018, the cabinet expressed the wish to build 75,000 new homes every year until 2025.

The number of new homes being built is expected to drop to 55,000 this year and to 50,000 in 2021. This is largely due to the problems surrounding nitrogen, PFAS and the lack of construction sites. Recovery is expected from 2022.

Problems for starters and middle incomes

In the current housing market, starters and middle incomes have difficulty finding suitable homes, the report says. They often have to settle for the existing housing stock. The share of first-time buyers on the owner-occupied market decreased from 48 percent in 2013 to 32 percent in 2019.

Vulnerable groups also find it difficult to intervene. For the time being, an extra 50 million euros will go to the care of the homeless. In time, the cabinet wants to get rid of the reception as much as possible. To this end, 10,000 additional living places with supervision will be needed in the next year and a half.

The corona crisis also has consequences for the housing market. According to the report, there is a risk that people may become more reluctant to buy a home, making it less likely for investors and developers to invest in new home construction.

Minister Ollongren points out that during the previous crisis of 2008 we saw that the demand for housing is returning quickly, while the effects on construction can have a long lasting effect.

Demand for land to build is increasing

The demand for locations to build new buildings is increasing, while the supply is extremely limited.
Given the expansion of the North / South line towards Purmerend, for example, it seems that building in Amsterdam North is one of the few remaining options.

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Sources: Nu.nl en NOS.nl