Dutch house prices hit record high in January amid supply shortage

ISTANBUL

House prices in the Netherlands reached a record high in January, driven by a persistent housing shortage, limited new construction, and rising household incomes, according to official data released Monday.

The average price of an existing home climbed to €493,875 ($533,000), marking a 5.4% increase year-on-year, figures from Statistics Netherlands (CBS) and the Land Registry showed.

Prices also rose 1.2% compared to December, Dutch online newspaper NU reported.

“The price increase is mainly due to the tight housing market. There is high demand and low supply, and this trend is continuing. We see this across the country,” CBS economist Marjolijn Jaarsma said.

The supply shortage has made it increasingly difficult for buyers to secure homes, with many bidding above asking prices. Construction has also failed to meet government targets for the third consecutive year, worsening the imbalance.

Nearly 80,000 homes were completed last year, below the official goal of 100,000 annually.