Netherlands Housing Supply to Increase, Shortage to Persist Through 2027
The Netherlands anticipates a rise in housing supply, with 80,000 new homes expected in 2025 and 84,000 in 2026. However, this increase will not alleviate the housing shortage, projected to reach a deficit of 453,000 homes by 2027 due to various challenges, including land availability and labor shortages. The construction sector will require significant investment and an influx of workers to meet these demands.
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The Netherlands is set to see a significant increase in newly built homes, with 80,000 expected in 2025 and 84,000 in 2026, according to Taco van Hoek, director of the Economic Institute for Construction (EIB). Despite this growth, the housing market will remain tight, with a forecast of 81,000 homes in 2026 and 85,000 in 2027, insufficient to meet the backlog from a deficit of approximately 395,000 homes in 2025.
The EIB estimates that new home construction will require over 23 billion euros in investment this year and over 25 billion euros next year. Challenges include limited building land, nitrogen-related restrictions, and a congested electricity network.
The construction industry faces a need for 94,000 new employees over the next five years, with potential delays in projects due to labor competition from the Ministry of Defense. Experts warn that the housing deficit could grow to 453,000 homes by 2027 without increased construction rates.
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