Since the end of 2015, the Amsterdam housing market is one of extremes. The unprecedented demand is leading to record prices of 5,000 euros per square meter. Despite the construction of more houses, the shortage continues. In 2017, 3,500 building permits were issued and this is much less than the expected growth in the number of households this year by 6,300. Only in 2019 will there be more balance between supply and demand.
Also shortages in the region
Not only Amsterdam is struggling with the problem of a housing shortage. The whole Amsterdam Metropolitan Area is coping with the same issue. Last year 11,100 building permits were issued, while the number of households is expected to increase with 16,200. Despite an increase of 44%, the number of permits is not sufficient to keep up with demand.
There are a number of municipalities where there is still a choice. In Almere, Diemen, Edam-Volendam and Heemskerk, enough homes will be built next year to partly decrease pressure on the Amsterdam housing market.
Direct public transport connection with Amsterdam
People from Amsterdam are increasingly moving to different cities. Only 40% of people moving house choose to remain in the city. They mostly go to Haarlem (4.7%), Almere (4.1%) or Zaandam (3.4%). The strongest relative increase can be seen in municipalities that lie further away, like Rotterdam (1.5%), The Hague (1.9%) and Utrecht (2.5%).
It is striking that in the last two years they have mainly moved to cities with a direct public transport connection to Amsterdam. In addition to the three major cities, Delft, Den Bosch, Lelystad, Amersfoort and Arnhem are popular. The consequence is that prices at these locations will rise. A similar development can be seen in London. House prices near public transport hubs are rising rapidly.
More and more new construction
In the coming years the number of large new construction projects will increase sharply. In Houthavens, Noord, Nieuw-West, the Bajes Kwartier, Amstelkwartier, Center Eiland IJburg, Sloterdijk and Zuidoost thousands of homes will be built. In addition, a new neighborhood is being built on the Hembrug site. These new developments will meet the demand for housing over the next two to five years. The growth in households will reach 4,200 in 2019 and will decline further in the years to come. Because the production of new houses continues to rise, the expectation is that a quieter market will finallt arise in Amsterdam and the shortage of housing will decrease.