The demand for mid-priced rental homes

The demand for mid-priced rental homes is increasing, especially in urban areas, putting a considerable pressure on the housing market as a whole. Over the next few years, it will be important to find ways to meet this growing demand. This section gives more information about the need for mid-priced rental homes. 

Who opts for the mid-priced rental sector?

The Dutch housing market can be divided into three sectors: the owner-occupied sector, the regulated rental sector, and the non-regulated rental sector.


More than 80 percent of the regulated sector is owned by housing associations. Up to 2021, the target group of housing associations will be households with an income of no more than € 41,056 (2018 price level). This means that many households will not be eligible for these homes. Not everyone can afford an owner-occupied home due to the strongly increased housing prices. As a result, a greater share of households rely on the mid-priced rental sector. 
People in need of a rental home in the mid-priced sector are:

 

  • Those who will start living on their own 
  • Households who are no longer or not eligible for social housing, but are not (yet) able to buy a home due to mortgage requirements
  • Those interested in flexible housing due to their profession or a job contract
  • Knowledge workers
  • The elderly population who want to sell their home to have disposable income, but are not eligible for social housing due to their income or assets

 

Infographic

Click on the picture below or this link to see the full infographic.

Demand for non-regulated affordable housing and distribution

At this time, there are 469,000 mid-priced rental homes in the Netherlands. For the next ten-year period, there will be a need for an additional 60,000 to 200,000 non-regulated affordable rental homes. This growth is due to an increase of (single) households and the number of households that are moving or plan to move to a mid-priced rental home. 

The demand for mid-priced rental homes is partly due to the pressure on the overall housing market. The map below shows that this pressure differs among regions. The demand for mid-priced rental homes is the greatest in the red areas, which are primarily in the Randstad region and cities of the Province of Brabant. The cities of Groningen, Nijmegen and Maastricht also experience high pressure on the local housing market. However, this does not mean that regions with lower pressure do not need more mid-priced rental homes. These areas also have a demand for more non-regulated affordable homes or need to prepare to meet the increasing need in the upcoming years. The need for mid-priced rental homes can also be due to other considerations, such as efforts by municipalities to create more diverse neighbourhoods and measures to prevent segregation. These may be reasons enough for municipalities to want to have more mid-priced rental homes in specific neighbourhoods.

This figure displays the pressure on the Dutch housing market (high pressure in red, low pressure in blue).

Source: BPD