Private Sector Rents in the Netherlands continue to rise

Discover the latest data on the rising average rental prices for private sector homes in the Netherlands, driven by high demand and limited supply.

Private sector rents in the Netherlands are on the rise, with the average rental price for a private sector home increasing in the first quarter of 2024. According to housing platform Pararius, the surge in rental prices can be attributed to the high demand for rental properties, coupled with a dwindling supply as more rental properties are put up for sale. The average square meter price for a private sector rental home reached 18.30 euros in the first quarter, marking an 8.6 percent increase compared to the same period in 2023. This upward trend follows the milestone reached in the last months of 2023, when the national square meter price surpassed 18 euros for the first time.

Despite the demand for rental properties, the supply is struggling to keep up, with only 17,594 homes becoming available for new tenants across the country in the first quarter. This figure represents a nearly 28 percent decrease from the previous year and a significant 38.5 percent drop from the first quarter of 2022. Moreover, the share of the purchase supply originating from the rental market rose to 7 percent in the first quarter, further highlighting the scarcity of available rental properties.

The ongoing increase in private sector rents in the Netherlands is driven by a combination of high demand and limited supply. As Netherlands rental properties continue to be in high demand, prospective tenants may face challenges in finding affordable housing options in the current market landscape.