First-time buyers now represent 42% of all home purchases in the Netherlands this year, according to new data from the national land registry Kadaster. This marks a sharp rise from just 27% in 2020.
The increase stems largely from government policies designed to ease market access. Specifically, the exemption from transfer tax for starters and new buy-to-let restrictions have played key roles. Moreover, private landlords are selling off rental properties in large numbers.
Why? Tighter regulations have reduced rental profitability. Consequently, many landlords are exiting the market. Since former rental homes tend to be smaller and more affordable, they naturally attract first-time buyers.
This trend is especially pronounced in major cities. In Amsterdam, The Hague, Rotterdam, and Utrecht, the share of starters among buyers jumped from 32% in 2020 to 57% this year. Similarly, in the next 40 largest municipalities, nearly half of all buyers are now purchasing their first home.
However, rising prices continue to pose a serious challenge. Since 2020, average house prices have climbed by 43%—almost twice as fast as average incomes. As a result, many first-time buyers cannot secure loans large enough to cover purchase costs.
Therefore, they increasingly rely on personal savings or external support. Single buyers contributed an average of €47,000 of their own money this year. Couples, benefiting from higher joint borrowing capacity, put in around €17,000 on average.
Meanwhile, intergenerational disparities are widening. Separate research by ING, reported by AD, reveals deep concerns among young people. More than half of Gen Z respondents—those born after the mid-1990s—say they worry about their housing future.
Financial help from family has become essential for many. Almost one in three Gen Z homeowners received support from parents or relatives. By comparison, only one in five millennials got such help. Among Generation X and baby boomers, that figure drops below 10%.
Furthermore, the housing shortage is reshaping life decisions. ING notes that young adults are delaying marriage, children, and long-term commitments simply because they cannot find affordable homes.
Thus, while policy changes and landlord exits have opened doors for starters, structural affordability issues persist. Without more supply or targeted support, the first-time buyers Dutch housing market may stall—even as demand soars.
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