Welcome back to the Rentbird blog, where we’ll be breaking down the biggest rental news from the start of February! This week, new reports shed light on rising home prices, increasing barriers for first-time buyers, and the ongoing foundation crisis affecting hundreds of thousands of properties across the Netherlands. Here’s everything you need to know.

Sinking Homes Crisis: Homeowners Face Uncertainty and Huge Repair Costs

A newly released subsidence map has identified 425,000 buildings in the Netherlands at risk of foundation problems due to rotting wooden piles, unstable peatlands, and drying clay soil. Repair costs could reach €50 billion, with some homeowners potentially needing to pay over €120,000 to fix their properties.

Housing Minister Mona Keijzer has urged homeowners “not to panic,” emphasizing that not all homes in high-risk areas will experience issues. However, experts warn of serious economic consequences, with banks, insurers, and property investors closely monitoring the situation.

The government has set up a €56 million loan fund to assist those unable to afford repairs, but the financial burden will largely fall on individual homeowners. Some MPs are even calling for psychiatric support for those struggling with the financial and emotional toll. Meanwhile, concerns are growing that the crisis could devalue Dutch property, with analysts warning that Amsterdam house prices could drop by 40% due to climate-related risks.

Only 11 Dutch Municipalities Still Have Homes Under €300,000

Finding an affordable home is becoming nearly impossible in the Netherlands. In 2024, the average transaction price hit €451,000, according to Statistics Netherlands (CBS). Even in the cheapest municipality, Pekela (Groningen), home prices exceeded €250,000.

A year ago, 20 municipalities had average prices under €300,000, but now only 11 remain. Meanwhile, Laren was the most expensive municipality for the third consecutive year, with an average home price of €1.05 million, followed by Bloemendaal (€1.04 million) and Blaricum (€994,000).

Despite the gap between the most and least expensive areas shrinking slightly, the most expensive homes still cost four times as much as those in the cheapest areas. The sharp rise in home prices is largely driven by housing shortages, lower mortgage rates, and higher incomes.

First-Time Buyers Struggle as Savings Become a Requirement

For first-time buyers, entering the housing market without significant savings or family support is becoming nearly impossible. According to mortgage provider Munt Hypotheken, first-time buyers now need to contribute an average of €91,073 of their own money when purchasing a home—nearly three times the amount required eight years ago.

In 2017, buyers needed around €34,805 out of pocket, but soaring prices and stricter lending rules have made it harder to secure a mortgage. The situation was even worse in 2022, when buyers had to contribute an average of €95,691, partly due to pandemic-era savings and a now-abolished tax-free gift allowance of €100,000 for home purchases.

Buyers over 35 years old are also putting down more money when purchasing a home, largely due to increased home equity. In 2017, the average contribution was €80,038, but by 2024, it had jumped to €203,011.

The Takeaway

Sinking homes crisis: More updates on government assistance and market reactions are expected later this year.

Housing affordability: The number of municipalities with homes under €300,000 is likely to shrink further as demand remains high.

First-time buyer challenges: Without policy changes, homeownership will continue to be out of reach for many without significant financial support.

With housing prices rising and financial barriers increasing, 2025 is shaping up to be another difficult year for Dutch homebuyers.

Amy Worgan

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