Seven out of 10 first-time buyers struggle to find a suitable home in the Netherlands due to the housing shortage, ING has reported. This forces young people entering the housing market to delay important life events such as moving in together, getting married and having children. 

Dutch housing shortage impacts life progress

More than 50 percent of people buying a house in the Netherlands for the first time are postponing important life events, such as marriage, cohabitation and starting a career, because they can’t find suitable homes on the Dutch housing market. Around 49 percent of first-time buyers are also postponing having children for a minimum of two years. This is almost double the number reported in 2021 when ING last conducted the study.

Many young people are also still living at home with their parents, with 66 percent of potential buyers saying they are unable to move out despite wanting to. According to the housing report by the Dutch bank, young people want to first finish their studies before purchasing a home and starting a career.

Only after achieving this would they like to get married or live together with a partner, and lastly think about children. About 66 percent of young people feel frustrated and powerless as they feel they don’t have a choice but to delay important life decisions because of the strained housing market.

Difficulty finding suitable housing in the Netherlands

Young people entering the housing market who have put off certain life events are looking for homes that meet specific requirements, such as a size of 75 to 150 square metres, being located in a safe neighbourhood and close to work, and having at least three bedrooms and some form of outdoor space. 

"These expectations are quite high. But on the other hand, the idea that a starter only needs a small home is also too simplistic,” said ING Residential Manager Wim Flikweert. “They may be suitable for a single person or to start with as a couple. But with a desire to have children, there is clearly a need for a larger home." Needing both incomes to pay for a mortgage is also a reason given for delaying starting a family.

Dutch housing construction targets not being met

Choices of homes on the Dutch housing market don’t appear to be improving anytime soon. Based on data from recent years, Statistics Netherlands (CBS) has reported that in the first half of 2024, the lowest number of new homes have been completed since 2018. The number of building permits has been declining in recent years, which has an effect on housing construction up to two years later - this is what is being experienced now. 

Only 32.700 homes were built and added to the housing market in the first six months of the year, far behind the goal of 100.000 new for the year. “If we want to reach 100.000, we need to step it up a notch in the second half of the year,” said Peter Hein van Mulligen, chief economist at CBS. 

According to Van Mulligen, if the government wants to achieve its goals, it can’t rely solely on the construction of new homes but should also split existing homes or transform empty offices into houses.