nuOct 7, 2026, 05:48

Rental prices are rising faster than home prices

Private sector rental prices increased by 4.4 percent annually, rising faster than inflation and the price of owner-occupied homes. Data suggests the market is shrinking as landlords sell their properties following the introduction of the Affordable Rent Act and changes in tax regulations.

Rental prices in the private sector have risen at a faster rate than home purchase prices, according to data from housing platforms Huurwoningen.nl and Pararius. During the third quarter, the average rent in the free sector reached 20.92 euros per square meter, amounting to approximately 1,914 euros per month. This represents a 4.4 percent increase compared to the same period last year, which outpaced inflation. Prospective tenants are now required to earn at least three times the monthly rent to qualify for a lease, totaling roughly 5,742 euros per month.

The rental market continues to face significant shortages, exacerbated by landlords selling their properties rather than leasing them. Pararius reports that since the implementation of the Affordable Rent Act in July 2024, over 76,000 properties have been removed from the rental market. While the legislation aimed to increase housing affordability, market experts argue it has led to a decrease in availability. Increased box 3 taxes have further rendered renting out properties less profitable, leading to sales even in the high-end segment.

Economy Business Netherlands

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Based on reporting by nu. Translated and condensed by LocalHeadlines.

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