While the cabinet targets 100,000 homes a year, no more than 70,000 new homes will be built this year. No more than 70,000 homes should be added in 2024.
Says the Institute for Construction Economics (EIB). Researchers see that the housing market has cooled in recent months, in part due to higher prices for building materials. Last year, 12.5% fewer new housing construction permits were granted than the previous year.
Accrued interest also plays a role. As a result, some potential buyers are giving up because they can’t afford a new home. In addition, since the court’s decision in November, building owners have had to account for nitrogen emissions released during construction projects.
falling house prices
ABN Amro economists assume that prices in the housing market will fall faster. They used to expect a 2.5 percent price drop, now it’s set to 6 percent. The expected decrease for next year is 4%.
In this case, the average selling price of a house drops to the mid-2021 price level. According to statistics, the average house price in the Netherlands was 401,000 euros in December 2022 and 360,000 euros in May 2021.
Source: NOS
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
