The average size of a newly built home in the Netherlands has been getting smaller each year. This, in conjunction with more building permits being issued, is a result of the housing shortage and increasing housing prices.

Size of new Dutch housing shrinking

Based on an analysis by Buildsight of figures from Statistics Netherlands (CBS), RTL Z has reported that the average new Dutch house is being built 15 to 20 square metres smaller than what they were in the past. In 2023, newly built rental properties had an average size of 105 square metres, while new owner-occupied housing had an average of 184 square metres. Not only is this a significant drop from the previous year, but it is the smallest surface area for both types of housing in over a decade. 

The Dutch association of real estate agents (NVM) noted a similar trend. In 2023, 43 percent of newly constructed properties that entered the Dutch housing market had a surface area no higher than 100 square metres - this is more than double the 21 percent of new properties with this size in 2020. 

According to CBS, building permits were issued for the construction of 18.800 homes in the second quarter of 2024 - 21 percent more than for the same period last year. Many of these properties are likely to have smaller sizes so new homes can continue to be built.

Smaller houses could solve the Dutch housing shortage

Record high house prices and the housing shortage are the main reasons for the shrinking sizes of properties. “Land is so scarce, plots are getting smaller and smaller, and construction costs have risen enormously due to expensive materials and new technology in the home,” said Michel van Eekert of Buildsight. “Then building smaller is the only solution to keep it affordable.”

Houses in the Netherlands also have a lot of wiggle room when it comes to space. With an average home size of 52 square metres, Dutch homes are more spacious than the European average of 43 square metres - that’s before taking the large size of an owner-occupied home into consideration, which average 184 square metres. 

High housing prices are another reason. Though most wages have increased at a higher rate than inflation, many residents still struggle to afford their own homes. “Real estate prices have risen faster than wages in recent years; the only way a new construction project can continue is by cutting back on the number of square meters per home. That is happening now,” said Marja Elsinga, a professor of housing policy at TU Delft.

The housing shortage means that the previous trend of houses getting larger has to end. "We also need to build big for the flow," said Van Eekert. "But now too many people are using too much living space, at the expense of people who have nothing. If we want to continue building, smaller types of homes will have to come onto the market."