November 17 2025
The demand for affordable housing remains high, but housing construction is barely getting off the ground. The causes are the sharply increased costs and complicated regulations. The situation is particularly dire in Amsterdam. "If we do nothing now, the problem will only get bigger," warns Jeroen Lokerse, CEO of real estate advisor Colliers.
The Netherlands is struggling with a shortage of around 400.000 homes. In 2024, only 67.000 new homes were completed, while the government is aiming for 100.000 per year. According to the CBS, this is partly due to rising costs for land, materials and labour. At the same time, strict environmental and nitrogen regulations are creating additional obstacles. “The costs of new construction have increased by 50 percent in five years,” says Lokerse. “Everything has become more expensive: from cement and steel to personnel.”
In Amsterdam, the situation is particularly dire. The municipality and ABF Research state that only 2024 new homes will have been built in 5.700, while the target figure is 7.500. Yet demand continues to rise, partly due to young people and expats moving to the city. “Amsterdam is and remains attractive, but we cannot keep up with demand,” says Alderman Reinier van Dantzig (Housing).
Construction costs in Amsterdam are rising faster than in the rest of the country. A new-build apartment now costs an average of 8.500 euros per square meter – that is 10 percent more than in 2023. For a 100 m² home, that amounts to 850.000 euros, excluding land. “Affordable construction is becoming impossible,” says Harold Coenders, CSO at Colliers. “Especially starters and people with an average income are missing out.”
The high construction costs are not only due to more expensive materials. Land prices in Amsterdam are extremely high. In addition, developers must meet strict sustainability requirements, such as gas-free homes and circular building materials. The shortage of construction personnel also plays a role: “A bricklayer sometimes earns more than a teacher,” Coenders notes.
More and more construction projects are being postponed or even cancelled. “Investors are dropping out because the calculations no longer add up,” says Lokerse. One example is Haven-Stad, a large-scale project in Amsterdam-West with 70.000 planned homes. Due to uncertainty about financing and slow permits, the start has been postponed until 2027. Smaller projects, such as social housing in Amsterdam-Zuidoost, are also at a standstill. “Without new construction, the shortage will continue to grow and prices will only rise,” says Van Dantzig.
Minister Mona Keijzer (Housing) wants to build faster and focus on affordable housing. According to her, two-thirds of new construction should consist of social housing or mid-range rental housing. But according to critics, such as Lokerse, this is not realistic without additional measures. "Who pays the difference if building is more expensive than what such a home yields?" he asks. He advocates subsidies and relaxation of environmental regulations.
There are hopeful signs, however. Chip manufacturer ASML is investing in the construction of 25.000 homes around Eindhoven to address the housing shortage there. Some municipalities are trying to build faster through more flexible zoning plans. Amsterdam is investigating whether vacant offices can be converted into homes, although experts say that is just a drop in the ocean.
New technologies such as blockchain and cryptocurrencies could potentially help solve financing problems in housing. Startups in the Netherlands are experimenting with 'tokenized real estate', where a home is divided into digital shares. These shares can be purchased with crypto as Bitcoin or Ethereum. This makes it easier for developers to attract capital. “Blockchain can make the housing market fairer and more accessible,” says tech entrepreneur Bas van der Lans.
The situation on the housing market is worrying. Due to rising costs, staff shortages and complicated regulations, more and more new construction projects are coming to a standstill, especially in Amsterdam. In the meantime, the shortage continues to grow and homes are becoming unattainable for more and more people.
There are hopeful initiatives, such as corporate investments and technological innovations, but without rapid and structural measures, the crisis will continue. “The time for talking is over,” says Lokerse. “We have to build now, otherwise housing will become a luxury that is only accessible to the elite.”
1. Why is housing construction in the Netherlands stagnating?
Construction has come to a standstill due to high costs, staff shortages and complicated regulations. Developers are no longer able to complete their financial planning.
2. What is the situation in Amsterdam?
Amsterdam is building far below its own targets, while the demand for housing continues to grow. Construction costs are extremely high, making projects unaffordable.
3. Are there any solutions in sight?
Yes, among other things, corporate investments, more flexible regulations and technology such as blockchain can help. But experts emphasize that structural measures are needed quickly from the national government.
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