Finding an affordable place to live in the Netherlands is becoming increasingly difficult, especially for younger people trying to rent or buy their first home. While overall housing affordability has improved in recent years, several reports show that the benefits are not being shared equally. Research discussed by ABN AMRO and real estate platform Vastgoed Actueel points to a growing divide between homeowners and renters, particularly in large cities such as Amsterdam, Rotterdam and Utrecht.
Existing homeowners benefit the most
According to ABN AMRO’s Housing Market Monitor, housing cost ratios in the Netherlands have generally declined between 2019 and 2025. This means that, on average, households are spending a smaller share of their income on housing than before, largely because incomes have grown faster than mortgage and rent costs.
However, the biggest winners are existing homeowners. Many have seen their incomes rise while mortgage payments remained stable or even decreased. As a result, they now spend a smaller portion of their income on housing and have more disposable income left over.
The situation is very different for first-time buyers. Although some young buyers may still pay lower monthly coststhan renters, entering the housing market has become significantly harder. High property prices, increased financing costs, and stricter lending requirements mean that buyers now need more savings upfront. First-time buyers are also paying more money for less space, often living in homes that are 10 to 15 square meters smaller than thoseowned by long-term homeowners.
Renters under increasing financial pressure
Renters are experiencing a different reality. According ABN AMRO, renters in the private sector consistently spend a much larger share of their income on housing than homeowners.
This pressure is especially strong for young renters in cities like Amsterdam, Rotterdam and Utrecht. Rental housing in these cities has become more expensive and less available, partly because some landlords are selling off rentalproperties. As a result, younger renters often have no choice but to accept smaller homes in order to stay within budget.
ABN AMRO’s research suggests that younger renters and buyers are keeping their housing costs relatively stable mainly by accepting smaller living spaces. When housing costs are measured per square meter, many are actually paying more than previous generations for a smaller place. This means that lower housing cost ratios do not necessarily reflect better living conditions.
A divide between ‘insiders’ and ‘outsiders’
Newspaper Het Parool describes the housing market as increasingly split between ‘insiders’ and ‘outsiders’. Insiders are people who already secured housing years ago, either by buying property or entering the rentalmarket before prices surged. Outsiders include younger generations and newcomers who are now trying to enter the market under much more difficult conditions.
Research by Vastgoed Actueel argues that age, housing type and location are becoming stronger factors in determining who benefits from the housing market. Older homeowners and renters have generally seen improvements in affordability, while younger households face growing financial strain.
Meanwhile, proposed changes to Dutch rental laws could further complicate the situation. Policymakers hope that making renting out space more attractive for private landlords will increase the supply of rental homes. However, critics warn that such changes may also lead to higher rents for thousands of tenants.
In conclusion, the Dutch housing market is becoming increasingly divided. While existing homeowners benefit from financial stability and rising incomes, younger renters and first-time buyers face growing barriers to entry and lower housing quality. As the divide continues to grow, experts argue that future housing policies must focus not only on affordability, but also on equal access to quality housing and long-term stability for younger generations.
Written by Bárbara Luque Alanís