Housing market autumn 2025: prices up, construction down
The Dutch housing market shows no signs of cooling down. Existing homes are now almost 8 percent more expensive compared to last year, with the average purchase price approaching €500,000. That’s about 14 percent higher than the previous peak in 2022. And despite these high prices, nearly 20,000 homes were sold in August alone, that is 9 percent more than the year before.
Why are prices still going up?
It comes down to a mix of factors. A structural housing shortage of roughly 400,000 homes keeps demand far above supply. At the same time, mortgage rates have eased slightly while incomes have risen, allowing buyers to borrow more. Another driver is the wave of private landlords selling rental properties. This brings extra supply to the housing market, giving some first-time buyers a better shot, but it also makes the rental market even tighter.
The biggest bottleneck remains new construction. In the first half of 2025, the number of newly built homes hit the lowest level since 2018. Particularly striking is the lack of suitable senior housing: out of a target of 290,000 new homes for the elderly by 2030, only 4,000 were built last year. Without enough options, many older homeowners stay put in larger family homes, limiting the flow of properties onto the market for younger households.
Buyer sentiment: pessimistic
For house hunters, the mood is grim. Surveys show that 8 out of 10 prospective buyers believe they have little chance of securing a home. Even dual-income households often find themselves outbid. Consumer confidence is at historic lows; and yet, paradoxically, both transactions and prices continue to rise.
Not every part of the Netherlands is moving at the same pace. Provinces like Groningen and Friesland are now catching up, while prices in Utrecht and surrounding towns are climbing fastest. Amsterdam is the exception: prices are so high that many buyers are looking to nearby cities instead.
Political debate heating up
Meanwhile, Dutch politics is once again debating whether abolishing the mortgage interest deduction could cool the market. Some parties focus on boosting construction, while others want to curb demand. For now, one thing is clear: with the average home price heading toward half a million euros and new construction at a historic low, the housing market remains stuck in a difficult position.
