For many expats who move to the Netherlands, the search for a place to live starts as an exciting challenge, but often ends in frustration. Middle-rent housing – with rents between €850 and €1.400 per month – is scarce. Demand is high, supply is limited and rents are rising.
Surrounding area of the Randstad
The Netherlands is an attractive destination for expats, especially in cities such as Amsterdam, Rotterdam, Utrecht and The Hague. The job market is flourishing, international companies are setting up shop here and the quality of life is high. But where should expats live? Social housing is not really an option due to income requirements and long waiting lists. It is difficult to buy a house due to rising prices and strict mortgage rules, and it is a risk to consider buying in the first year after emigrating. What remains is an overcrowded rental market in which houses disappear quickly and rental contracts are often temporary. High entry costs and requirements such as the landlord’s points system do not make it any easier.
Scarcity
Why is mid-range housing so scarce? According to a report by Pararius, the largest housing market website in the Netherlands, project developers are focussing on higher segments, regulations such as nitrogen restrictions are scaring off investors and slow licensing procedures are delaying construction. In addition, factors such as the growing population and the increase in flexible working also play a role. The demand for temporary housing has increased, and expats are confronted with high brokerage costs and opaque rental structures. This ensures that expats and other people with middle incomes are stuck in a system that offers them few opportunities.
We have a colleague who came to the Netherlands at the end of last year and we asked him what he thought of the experience: ‘Finding a house in the Netherlands was much more challenging than I had expected. Although I had responded to housing offers early on, it was quite difficult to get responses from estate agents during my 1.5-month search. I managed to view four or five houses, but the landlords did not choose me. The fact that I was new to the country and had no rental history in the Netherlands made the process difficult. In the end, we were able to find a suitable house through the contacts that TailorMinds has with a number of estate agents. Finding a suitable home therefore took both time and patience.’
Multiple solutions needed
Several solutions are needed to continue tackling this problem. Solutions such as faster construction processes, a more attractive investment climate and an expat-friendly rental policy would provide a solution. More transparency in the rental market and better cooperation between the government and market parties to build new homes can help relieve the pressure. Landlords could be encouraged to offer fair, long-term leases. The government could also focus on converting vacant office buildings into housing and accelerate new construction initiatives.
Questions?
To date, we have been able to find our expats their first rental home through a good network of reliable market parties. Are you an expat who would like to come to the Netherlands? You can find more information here. Any other questions? Feel free to contact us.
