The rental market

The Dutch housing stock is comprised of 2.5 million regulated and 0.5 million non-regulated rental homes. About 0.7 million homes are owned by private landlords. In total, the rental home market accounts for 40% of the total housing market.

Demand for rental housing is increasing for several reasons:

  • Population growth and an increasing number of households lead to a rising demand for housing.
  • Increasing flexibility in the labour market contributes to a rising demand for rental housing. Demand for flexible and temporary housing solutions is expected to increase as labour contracts become more flexible and temporary employment is on the rise.
  • Demographic changes lead to increased demand, e.g. a growing number of elderly people are looking for rental homes - with on site care, for instance. Also, increasing number of students are looking to rent living space.

During the economic crisis, rental prices decreased. But, since 2010, rental prices have gradually recovered to €13.50 per square meter in the second quarter of 2016. Rental prices are higher in cities, although regional difference are limited from an international perspective, especially compared to geographically larger countries with larger regional income differences.

Rental price per square meter in the non-regulated market (Pararius)

Regulated vs. non-regulated

In the regulated market, rents are regulated by the government. In the non-regulated market rent-setting is free. Both markets are open for private investments.