The shortage of housing in the Netherlands has now stretched to 410,000, and more investment in rental properties is becoming increasingly urgent, according to a new report by real estate advisory group Capital Value.

The number of households in the Netherlands has expanded by 80,000, but the size of the housing stock has only gone up by 70,000, Capital Value said.

The outgoing cabinet had a target of 100,000 new homes a year, and that has been adopted by the incoming administration. However, in 2025 the increase in new homes, including both new construction and conversions, fell for the third year in a row.

Capital Value also expects a further reduction in the number of rental homes as investors and housing corporations continue to sell off properties, partly because of the expansion of rent controls to cover most of the market.

Over the past year, more than 26,000 rental homes were sold to owner-occupiers, and not enough new ones were built to make up the difference, the report states.

Capital Value says investors have €27 billion available to fund new housing projects over the coming three years, but that for many developments the figures do not add up.

“The new cabinet has an important job to do to make sure that this capital can be utilised,” Capital Value director Arjan Peerboom told the Telegraaf.

“It is also becoming clearer that international investors are turning their backs on the Dutch market by selling to Dutch investors and owner-occupiers,” he said. Their share of the rental property market fell from 80,000 to 72,500 units last year.

In addition, the report says not enough homes for “seniors” are being built to enable them to leave larger family houses and move into more suitable accommodation, which would also be a boost across the chain.