Rents in the largest cities are rising while supply is falling

The rents of private sector homes in the five largest Dutch cities increased in the second quarter of this year. Compared to the same period last year, the average square meter price for new leases in Rotterdam, Amsterdam and The Hague rose by almost eight percent, reports rental housing platform Pararius Thursday. In Utrecht and Eindhoven it was more than five percent.

Pararius attributes this increase to the increasing tightness in the rental market. In the second quarter of this year, 27 percent fewer rental homes were offered in the five largest cities than a year ago, even though demand for them is increasing.

Director of the rental housing platform Jasper de Groot does not find it surprising that the supply is less. “This is a direct result of the accumulation of measures that the cabinet has taken and still wants to take to improve the housing market,” he writes in a press release. According to him, due to these new measures, many homes in the free sector fell back to the social sector and many rented homes that became vacant were not rented out again, but sold.

Nationally, the square meter price of rented homes in the private sector has increased by 0.4 percent compared to last year. The fact that prices are rising less rapidly nationally is due to the decrease in the more expensive supply in the five major cities, according to Pararius. The number of free sector rental homes available for new tenants fell nationwide by 12.8 percent.

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