Table of contents
Peter Boelhouwer is a Professor of Housing Systems at TU Delft. Peter is a frequent guest on BNR and wrote an essay on the housing market at the request of NSC from Pieter Omtzigt. In Delft, Peter discusses where the problems in the housing market come from and what needs to be done to solve them.
01:22 Who is Peter Boelhouwer?
02:30 Housing market as an imperfect market
05:40 Dutch housing market compared to abroad
11.35 Static, dynamic and speculative markets
17.05 Dutch housing policy since the war
21.35 Origins of the housing corporations
23.45 Scandals at the housing corporations
26.35 Growth of the private sector due to Stef Blok
27.46 Cyclical housing policy
30.25 Inconsistent housing policy
31.37 Increase in demand
39.00 Structural solution for the housing market
45.30 Rules under Hugo de Jonge
48.00 Should the government be reorganized differently?
53.00 Insiders and outsiders
1.02.10 Building for the elderly
1.06.17 When will the housing crisis be resolved?
A fresh perspective on the Dutch housing market – In conversation with Professor Peter Boelhouwer
How has the Dutch housing market become so strained? What role does policy play in this, and why is resolving it taking so long? In the latest episode of the Gouden Stenen Podcast, I, Antoine Steenkamer (founder of Mijn Verkoopmakelaar), sought answers from Peter Boelhouwer, Professor of Housing Systems at TU Delft. He regularly appears on BNR and wrote an essay on the housing market at the request of NSC from Pieter Omtzigt. I went to Delft to understand where the problem lies and how we can tackle the housing crisis.
An imperfect market as a basis
According to Boelhouwer, the housing market is an 'imperfect market'. Where in many other markets you would expect supply and demand to find each other quickly, in the housing market this can easily take ten years. Not surprising, as building takes time, and laws and regulations are complicated. At the same time, living is a basic need: you can't live without a roof over your head. It is this combination - a complex market and high societal urgency - that makes the subject so fascinating and sometimes also frustrating.
Historical perspective
Compared to other countries, the Netherlands is unique. Our social rental sector, at around 28% to 30%, is the largest in Europe, while the private rental sector is relatively small. There is history behind this.
- After the Second World War:
The government wanted to build quickly, cheaply, and a lot of houses. This was necessary to make low wages possible and stimulate reconstruction. In this way, the housing corporations, which already existed before 1945, grew into large social landlords. - The 70s: large-scale housing construction and home ownership:
The Netherlands grew, became more prosperous and all major political movements stimulated home ownership, each with their own ideological reason. As a result, tax benefits arose, such as mortgage interest deduction. - Years of wavering policy:
Peter Boelhouwer emphasizes that the government regularly changes course abruptly. One moment the focus is on social renting, the next investors have to save the market, and then the focus is mainly on promoting home ownership. This fluctuating approach partly explains why the housing market keeps getting stuck.
Bottlenecks in the current housing market
- Strongly increased housing demand:
From 2015, migration increased, mainly labor migration. Also, our changing household composition (people live alone for longer, divorce more often, etc.) makes the demand for housing greater than estimated. - Limited supply and long procedures:
Construction companies went bankrupt during the financial crisis, many construction workers sought other jobs and municipalities have too few civil servants to process permit applications quickly. In addition, objections procedures, protected by various (environmental) rules, can significantly delay matters. - Wavering policy and financing:
The government sets high ambitions: many affordable (social and middle) homes, inner city and sustainable. However, there is no structural financing or stable regulatory framework that gives developers and corporations certainty. As a result, construction can stagnate.
Possible directions for solutions
Boelhouwer points to various ways to break the impasse:
- More control and cooperation:
He mentions the Vinex period as an example: the State, municipalities and market parties joined forces. Clear agreements, land policy and joint investment resulted in the production of hundreds of thousands of homes. Even now, the State can help, for example through strategic land purchase and co-financing of large new construction sites. - Invest in flow:
A key lies with aging: if the elderly get suitable homes (for example in courtyards or life-cycle-proof complexes), family homes become free. This creates more dynamics in the market, which can also help starters. - Stability and continuity in policy:
To motivate parties to build, the government must commit to clear rules, subsidies and agreements for a longer period. Fluctuations in tax legislation (think about Box 3 for private landlords) and constantly changing construction and environmental requirements cause investors and builders to drop out. - Clear definition of affordability:
The government should unequivocally state: what is a social rent, what is 'middle rent'? Now that is often more nuanced and some people still get into financial trouble, despite rent allowance or other arrangements.
When is the crisis over?
Even with the best plans, it will take ten years or more before we have enough homes. The current shortage – about 400,000 homes – will not be solved within one cabinet period. But examples from the past show that higher construction productions are possible, as long as there is firm control and sufficient financing behind it.
Conclusion
Our conversation ends with a hopeful thought: the bottlenecks in the housing market are not unsolvable. With more cooperation between government, builders and investors, stable regulation and clear choices about where and how we build, the Netherlands can enter a phase of massive housing construction again. Whether this will be successful depends on political will and the courage to pursue consistent policy.
“People often say that building is impossible, but in other countries it can be done in a few years. The Netherlands can do that too. If we choose to.” - Peter Boelhouwer
Curious about the entire conversation?
Listen to the full episode of the Gouden Stenen Podcast with Peter Boelhouwer, in which we delve deeper into the historical background, international differences and the practical steps to tackle the crisis.
About the author:
Antoine Steenkamer is the founder of Mijn Verkoopmakelaar and host of the Gouden Stenen Podcast. In each episode, he dives into the challenges of the Dutch housing market with a 'game changer' from real estate or real estate agency.
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