ABN AMRO Warns of Widening Housing Gap Between Homeowners, Renters and First-Time Buyers in the Netherlands

ABN AMRO Warns of Widening Housing Gap Between Homeowners, Renters and First-Time Buyers in the Netherlands

(IN BRIEF) ABN AMRO has found that despite an overall improvement in housing affordability across the Netherlands between 2019 and 2025, major differences are emerging between homeowners, first-time buyers and renters. The bank’s latest Housing Market Monitor shows that existing homeowners benefited the most from rising incomes and stable mortgage costs, while younger renters and first-time buyers — particularly in Amsterdam, Rotterdam and Utrecht — continue to face worsening affordability and shrinking living space. Private-sector renters consistently spend a larger share of their income on housing than homeowners, and first-time buyers are increasingly paying more for smaller homes in large cities. The research highlights a growing divide in both affordability and housing quality, with ABN AMRO warning that future housing policy must address not only prices but also the unequal living conditions experienced by different groups across the Dutch housing market.

(PRESS RELEASE) AMSTERDAM, 7-May-2026 — /EuropaWire/ — ABN AMRO has reported that although housing affordability in the Netherlands has improved overall in recent years, widening inequality between homeowners, first-time buyers and renters is creating an increasingly divided housing market. In its latest Housing Market Monitor publication, the Dutch bank highlights how falling housing cost ratios between 2019 and 2025 conceal growing disparities in both affordability and housing quality among different groups of households.

The study found that housing cost ratios — the share of household income spent on housing expenses — declined across almost all regions in the Netherlands for both homeowners and tenants in the private rental sector. Rising household incomes outpaced increases in mortgage payments and rental costs during the period, creating the appearance of improving affordability nationwide.

However, the research shows that these gains have been distributed unevenly, with existing homeowners benefiting significantly more than first-time buyers and younger renters. For many established homeowners, housing cost ratios fell because mortgage payments remained stable or even declined while incomes increased steadily. According to the report, this group now spends between 2 and 3 percent less of their net income on housing compared with 2019, giving them greater financial flexibility for other expenses.

By contrast, first-time buyers experienced only limited improvements. In many cases, especially in major Dutch cities, affordability has actually worsened. In Amsterdam, first-time buyers now spend up to 2 percentage points more of their income on housing than they did six years ago. The report also found that younger buyers are paying substantially more for smaller homes compared with existing homeowners.

The difference is particularly noticeable in urban centres such as Amsterdam and Utrecht. First-time buyers in Amsterdam spend an average of EUR 5,000 more annually on housing while living in homes that are typically 10 to 15 square metres smaller than those owned by existing homeowners. In Utrecht, the additional annual housing cost difference averages around EUR 3,000.

The publication also points to increasing inequality between homeowners and renters. Private-sector renters consistently face significantly higher housing cost ratios than owner-occupiers, with renters spending between 28 and 38 percent of their income on housing compared with 20 to 28 percent for homeowners. Younger renters in Amsterdam, Rotterdam and Utrecht have seen affordability deteriorate further, while older renters have generally benefited from improved affordability conditions.

Mike Langen said the growing divide between the owner-occupied market and the rental sector is making it increasingly difficult for renters to transition into homeownership. He noted that high property prices require first-time buyers to contribute larger amounts of equity while simultaneously facing rising costs for smaller living spaces.

The report also argues that headline affordability figures fail to capture the broader decline in housing quality experienced by younger households. While housing cost ratios may appear stable or lower on paper, many younger buyers and renters are reducing their housing expenses by accepting smaller homes. When housing costs are measured relative to living space, these groups are effectively paying more per square metre than in previous years.

ABN AMRO concluded that future housing policy in the Netherlands must look beyond overall house price trends and place greater focus on housing quality, generational inequality and regional disparities. The bank said policymakers should take into account the widening affordability gap between renters and homeowners, as well as the growing challenges facing younger households in large urban areas.

Media Contact:

Hans Sjouke Koopal
Sr Press Officer Private Banking, Personal & BB
hans.sjouke.koopal@nl.abnamro.com
+31 (0)20 3009154

SOURCE: ABN AMRO