Single people with an average income have virtually no chance on the owner-occupied housing market, but average two-income households now have more options than last year.
This has emerged from research by mortgage broker De Hypotheker. Those who want to buy a house on their own and earn an average salary, which is currently 41,500 euros gross, have only 1.1 percent of the total housing supply within reach. That is just as bad a situation as last year. With such a salary, you can get a mortgage of approximately 171,000 euros as a single person with an average fixed-interest period of ten years and an interest rate of 4.3 percent, when it is concluded with a National Mortgage Guarantee. This also applies to couples who together have one average income.
De Hypotheker charges 72,000 euros (41,500 euros plus 30,500 euros) for an average income for dual earners. This allows a couple to take out a mortgage of 339,000 euros at an interest rate of 4.3 percent, which is fixed for ten years. And that is 35,000 euros more than in 2022. This is because the average income has risen slightly and due to the adjusted lending standards used by banks. Since this year, the full second income may be included in determining the maximum loan sum; last year it was 90 percent. Partly because house prices have fallen, average two-income households can now afford one in four houses on Funda, compared to one in five last year.
It does matter where couples want to buy. In the province of Groningen half of the houses can be paid for by average two-income households, in Limburg 40 percent and in Friesland, Zeeland and Drenthe roughly a third of the supply. In North Holland and Utrecht, 16 percent is financially within reach.
Even in the big cities there is again something to choose for the average two-income earner. In The Hague and Rotterdam, one in three homes is affordable, in Eindhoven 17 percent, in Utrecht a quarter and in Amsterdam one in ten.
To move house
The average single earner has to move to the north or south of the country to buy a house. A single person can forget about it in the provinces of Flevoland and Utrecht, where 0.1 and 0.2 respectively of the supply is affordable. In Groningen (7 percent), Limburg (4 percent), Friesland (4 percent) and Zeeland (4 percent), house buyers with an average income still have a chance. In the big cities nothing is for sale for single people with an average income. In Amsterdam, the financeable supply is 0 percent and in the other cities almost 0.
Mortgage interest rates are expected to fall slightly in the course of this year
“The outlook on the housing market for single people with an average income has hardly improved in the past year,” says Mark de Rijke, commercial director of De Hypotheker. “Although their average average income has increased, this has been almost canceled out by the increase in mortgage interest. At the same time, we do see some bright spots. Mortgage interest rates, for example, are expected to fall slightly in the course of this year, which may improve the borrowing capacity of Jan Modaal somewhat in the long term. In addition, the housing supply has grown in the past year and more and more investors are leaving the field due to the increase in transfer tax and because more and more municipalities are introducing a self-occupancy obligation. As a result, there is less competition in the housing market, which has improved prospects.”
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