Homebuyers get less square footage for the same money with new construction
The number of new-build homes for sale in the Netherlands has reached its highest level in nearly eleven years, yet buyers are receiving less living space for the same price due to shrinkflation. Experts attribute this trend to rising construction costs and government mandates that prioritize small, affordable apartments over larger family homes.
In the third quarter of 2026, the supply of new-build homes in the Netherlands reached an eleven-year high with over 21,500 properties on the market. Despite this increase, buyers are facing a trend of shrinkflation where the average sales price remains stable at approximately 503,000 euros, but the floor space is decreasing. The average cost per square meter has risen by 4.8 percent annually to 5,320 euros, making new construction less competitive compared to existing housing options. Developers attribute this shift to rising construction costs, including expensive materials, labor, and high quality standards.
Industry experts note that government regulations requiring a high percentage of affordable units drive the focus toward smaller apartments. While these units meet the growing demand from single and two-person households, they often fail to provide the space required by families looking to move up in the market. Consequently, a mismatch persists between the types of homes being constructed and the diverse needs of different housing segments.
Based on reporting by nu. Translated and condensed by LocalHeadlines.
