The rental housing market in the five major cities (Amsterdam, Rotterdam, The Hague, Utrecht, and Eindhoven) showed a worrying trend in the second quarter of 2023, according to recent data from housing platform Pararius. Compared to a year ago, the supply of rental properties decreased by no less than 27%. Simultaneously, the average price per square metre in these cities rose by a significant 5 to almost 8%. At vb&t, we saw a decrease of 25.6%in Amsterdam and in Eindhoven the figure decreased by 35%compared to the second quarter of last year. However, in Rotterdam, we observed an increase of 20%, a positive development. Nationally, vb&t sees unprecedentedly low vacancy rates.
The WOZ Cap
This negative trend is largely due to the introduction of the WOZ cap in May 2022. With the decline in rental supply and growing demand, this serves as a worrying warning of what may be in store if further regulation of mid-rent is implemented, property experts believe.
Significant decrease in the five largest cities
Het aandeel van de vijf grootste steden in Nederland in het totale huuraanbod op Pararius is flink afgenomen in het tweede kwartaal. Waar in dezelfde periode van 2022 nog 46% van het aanbod op Pararius bestond uit woningen in deze steden, was dit in 2021 zelfs 55%. Echter, in het tweede kwartaal van 2023 is dit percentage gedaald naar 39%.
The decrease in the number of available rental properties comes as no surprise, according to Jasper de Groot, director of Pararius. He points to the various measures that have been taken and are still being considered by the government to improve the housing market. The introduction of the WOZ cap in the housing valuation system has led to many properties in the liberal rental sector now falling under the social sector. Instead of re-renting, landlords often choose to sell rental properties that become vacant. This has adverse consequences for tenants who do not qualify for social housing and are unable to purchase a property. The supply of rental properties has fallen sharply, particularly in the five major cities, since the introduction of the WOZ cap. In the second quarter of 2023, there was a decrease of 27% in the number of rental properties offered compared to a year ago.
Increase in the number of responses
The average number of responses per property has increased significantly. The number of responses per property in the second quarter of 2023 is at least three times greater than in the second quarter of 2021. At vb&t, we are also seeing large numbers of responses. In the big cities, we regularly receive at least 100 responses per property. Outliers sometimes show 400 responses per property in these cities. in smaller towns, we observe an average of between 50 and 100 responses per property.
Increase in price per square metre
Compared to last year, the average square metre price of non-social housing rental properties has risen nationally by 0.4%. New tenants paid an average of €17.10 per square metre per month. The average square metre price at vb&t has risen by 3.17% compared to 2022. New tenants at vb&t Verhuurmakelaars paid an average of €14.01 per square metre per month in 2023. However, the number of available non-social housing rental properties for new tenants has decreased nationally by 12.8% compared to a year earlier. While it may seem that rental prices are rising less quickly nationally, this is mainly due to the significant decrease in more expensive properties in the five major cities, which gives more weight to cheaper properties outside these cities compared to previous periods.