The Dutch challenges: spare capacity, shortage of housing and soaring rental prices; A quantitative analysis about the relationship between plan capacity, housing production and rental prices in the private rented sector in the Netherlands

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There is talk of a (regional) housing crisis in the Netherlands as the current supply cannot meet demand. As a result, housing prices in the Netherlands are rising, even more in denser areas as the Randstad. The current housing shortage, combined with changes in policy reforms, have led to rising rental prices in the private rented sector in recent decades and even expected to increase further to a housing shortage of 200,000 dwellings by 2030. To tackle this problem more locations should be assigned and developments have to take place in residential areas. In this research, the relation between plan capacity and housing production, and, the relation between housing production and rental prices in the private rented sector have been analyzed in a regression analysis. The findings suggest that a 1% increase in private rented plan capacity leads to a 0.44% increase in the number of building permits granted. An increase of building permits granted, and therefore housing production, of 1% leads to an increase in rental prices of 0.03% in the estimations. The influence of plan capacity indicates that both relationships, the housing production and the price developments in the private rented sector, are mostly affected by other factors.
Faculteit der Managementwetenschappen