Dutch rental market completely out of balance 

Demand significantly exceeds available rental properties

Pararius Quarterly Rental Report Q3 2024

In the third quarter of 2024, the number of available rental properties in the Dutch private housing sector decreased by 37.6 percent compared to the previous year, according to a data analysis by property portal Pararius. The average cost per square metre for a property in the unregulated housing sector increased by 7.4 percent during the same period, amounting to an average rent of €1,751.10 per month. This increase exacerbates the imbalance between supply and demand, particularly in the price category up to €1,500, where demand significantly outstrips supply.

Number of available properties 

In the third quarter of 2024, only 12,368 properties in the unregulated housing sector were available for new tenants across the Netherlands, 37.6% less than the previous year. During the third quarter of 2024, 15.794 properties were delisted. This means that the supply in the private rental market has become significantly scarcer, leaving prospective tenants with 3.426 fewer unregulated properties to choose from.

Average number of responses to a rental property

In the third quarter of 2024, a property in the unregulated housing sector that came on the market received an average of 40 responses. In 2023, a rental property could expect an average of 48 responses. Jasper de Groot, CEO of Pararius, notes: "We regularly speak with agents and potential tenants who are becoming desperate due to this situation. Some ads are only listed online for a day because the agents cannot manage the number of responses."

Demand vs. supply

An increasing imbalance between demand and supply in the Dutch unregulated rental sector has long been evident. This inequality was most pronounced in the price category from €1.157 to €1.500 per month. 58% of all responses to rental ads occurred in this price category, even though it represents just 32% of the total rental property offering on Pararius. This indicates intense competition in this price range. The price categories over €2.000 also show an imbalance, with 36.5% of ads receiving only 11.9% of the responses. This highlights the challenges faced by renters and landlords in various price ranges.

Market scarcity 

To offer insights into the rental market, Pararius has developed the "Pararius scarcity indicator." This indicator is a metric that reflects the ratio of demand to supply in the Dutch rental market and combines key dynamic elements of the rental market: total property listings, the number of newly published properties, average listing duration, and average number of responses per property.

In the third quarter of 2024, it was clearly a so called landlord's market. A scarcity indicator of 0.74 indicates that there is much more demand for rental properties than there is supply. This leads to quick rentals of available properties and rising rental prices, indicators of a tight market.

Average rental price vs. required income 

In the third quarter of 2024, the average rent for a home in the unregulated housing sector in the Netherlands was €1.751.10 per month. Landlords often require that a tenant's gross monthly income be at least three times the rent, which would amount to a minimum gross income of €5.254.82. This puts the minimum income requirement for an average rental property in the unregulated housing sector in the Netherlands well above the median income for 2024. De Groot: "An average rental property in the unregulated sector is unaffordable for median incomes. Currently, less than 8% of the housing stock consists of unregulated rental properties, 32% is social housing, and 60% is owner-occupied. Eight percent is already too little to act as a release valve for those who cannot rent socially and do not want to or cannot buy, and this proportion is decreasing further due to sales."

As the weighted average rental price in the Netherlands increases, so does the required (gross) income, thereby escalating financial pressure on renters and potentially reducing access to the rental market.

Pararius Rental Price Index (PHI) 

From this quarter, Pararius includes a rental price index in its reports. The Pararius Rental Price Index (PHI) tracks the development of average rental prices in the  unregulated housing sector and compares them with both the Dutch Consumer Price Index (CPI) and the Existing Homes Price Index (PBK). For all these series, Q1 2021 is used as the base quarter = 100. In this way, Pararius aims to provide a transparent and comprehensive picture of the Dutch rental market situation. Rental prices have risen more sharply than inflation in recent quarters. However, these increases do not approach the price developments of the housing market.

Shift from rental to owner-occupied housing market

In the third quarter of 2024, according to Pararius, 2.051 properties shifted from the rental to the owner-occupied housing market, a significant increase compared to the 1.261 properties in the same quarter of 2023. These figures are based on properties listed for sale on Pararius and represent roughly a third of the total housing market in the Netherlands. The actual number of properties sold is significantly higher.

This increase in so-called sales reflects the trend where private investors opt to sell their vacated rental properties instead of re-renting them, partly due to stricter regulations and increased tax pressure on the rental market by the Dutch government. It is also noteworthy that the type of property being sold is on average 14 square metres smaller than the average size of all properties; properties sold this quarter average 71 square metres, which is smaller than the total average of 85 square metres.

Conversely, the movement where a former owner-occupied property is offered for rent, shows a decline. In the third quarter of 2024, 424 properties shifted from owner-occupied to rental, a decrease of 28.4% compared to the 592 properties in 2023.

The percentage of the housing market originating from the rental market rose to 9% in the last quarter. This means that 9% of all properties listed for sale in Q3 2024 were former rental properties. In Q2 2024, this percentage was only 7.4%.

Average square metre price per housing type

In the third quarter of 2024, the average square metre price for apartments and single-family homes increased by 8.3% and 10.5%, respectively, compared to the previous year. New tenants paid €20.36 per square metre per month for an apartment and €15.91 per square metre per month for a single-family home. Nationally, the average rental price for a property in the  unregulated housing sector rose to €19.28 per square metre per month, an increase of 7.4% compared to the same quarter in 2023.

An average rental property was listed on Pararius for an average of 22 days in Q3 2024. A year ago, in Q3 2023, a property was listed for an average of 18 days.

Rental price development in Dutch cities 

Pararius also reports information on rental price developments at a local level. This information pertains to places where more than 30 unregulated housing sector properties were delisted during a quarter. Data shows that the average square metre price for rental properties in this sector rose in nearly 74% of the 76 measured places in Q3 2024 compared to Q3 2023. 

In the third quarter of 2024, the average price per square metre for rental properties in the unregulated housing sector fell in three out of the five major cities compared to the same quarter the previous year. In Eindhoven, it decreased by 3% to €17.65, making it the only one of the G5 cities below the national average of €19.28. In Amsterdam, the average square metre price fell by 1.7% to €26.96, and in Utrecht, it decreased slightly by 0.2% to €20.32. 

These declines may be due to a proportionally greater number of larger rental properties being leased. The average size of rented properties rose from 77 square metres in Q3 2023 to 85 square metres in Q3 2024. Generally, larger properties are cheaper per square metre, resulting in a lower average price per square metre. However, the absolute average rent still increased, with a new tenant in the Netherlands paying an average of €1,466.95 in Q3 2023 and €1,751.10 in Q3 2024. In Amsterdam, the average rent paid by a new tenant rose from €2,213 in Q3 2023 to €2,305 in the same quarter of 2024.

Percentage increases occurred in The Hague (+6.4%) and Rotterdam (+10%), with new tenants paying €20.44 and €20.93 per square metre per month, respectively.

The average square metre price for an unregulated housing sector property was lowest in the third quarter of 2024 in Almelo (€11.82), Hengelo (€11.85), Sittard (€12.44), and Heerlen (€12.82). In these cities, price increases were measured across the board in Q3 2024.

Amsterdam (€26.96), Amstelveen (€22.39), Zandvoort (€21.66), Haarlem (€21.64), and Hoofddorp (€21.23) had the highest square metre prices in the third quarter of 2024, all above twenty-one euros, with Amsterdam recording the highest.

Price drops at the city level in the third quarter of 2024 occurred in Diemen (-11.3%), Veenendaal (-15%), Hoorn (-2.1%), Alkmaar (-2.8%), Assen (-3.2%), and Zoetermeer (-3.7%), with all these cities also below the national average.

Delivery forms in the Netherlands

Pararius distinguishes three delivery forms: shell¹, upholstered², and furnished³. In the third quarter of 2024, shell rental homes represented 21.2% of the supply that was deregistered on Pararius. A new tenant paid an average of €17.92 per square metre per month for a shell rental home. Furnished homes accounted for 44.3% of the deregistered homes; new tenants paid €23.72 per square metre per month. Upholstered homes constituted 34.6% of the deregistered rental properties in Q3 2024. An upholstered home cost an average of €20.27 per square metre per month in the third quarter of 2024.

Dutch Provinces

In the third quarter of 2024, percentage price increases were measured at the provincial level compared to the previous year. The largest price increases were in the provinces of Friesland (7.2%), South Holland (7.2%), Groningen (8.5%), and Limburg (12.6%). With the exception of South Holland, these square metre prices are still below the national average. New tenants paid an average of €13.17 per square metre per month in Friesland. In Groningen and Limburg, the square metre price was €18.03 and €15.06, respectively, for a home in the unregulated housing sector.

In North Holland, the average square metre price remains significantly higher than in the rest of the Dutch provinces. New tenants paid €23.88 per square metre per month in the third quarter of 2024, which is 1.1% more than a year ago.

In Drenthe (+2.3%), Overijssel (+2.6%), Zeeland (+3.2%), and Friesland (+7.2%), the average square metre price is significantly lower than the national average: new tenants paid between 13 and 14 euros per square metre for a rental home in the unregulated sector here in the third quarter of 2024.

About Pararius

Pararius is the largest independent housing platform in the Netherlands. Through the platform, only professional Dutch brokers, including NVM, VBO, VastgoedPRO, housing corporations, managers, investors, and project developers, can present their available housing supply. This supply is registered by more than 4,500 rental and sales specialists on Pararius, ensuring very good quality and timeliness. The website welcomes more than 2.5 million visitors monthly. These visitors have free and unlimited access to the supply of over 60,000 homes. Pararius is available in 6 languages and is also the largest expat rental platform in the Netherlands for the more than 350,000 international knowledge workers working in the Netherlands.

Explanation of calculations

The figures in this rental monitor are based on 15,794 homes that were deregistered in the third quarter of 2024 after being offered for rent online. The condition in which a home is rented (shell, upholstered, or furnished) and the type of rental home (apartment, single-family home) have a major influence on the average rent per square metre.

Click here for an extended overview of how all calculations were made.