Housing Shortage Widens Generation Gap: Gen Z First Since 1950s to Lose Confidence
A widening housing shortage in the Netherlands is leaving Generation Z more uncertain about homeownership than any generation since the post-war era. This article explores the factors behind Gen Z’s lost confidence and what it means for renters and buyers today.
NL Rental News
Table of Contents
Further Reading on Renting in the Netherlands
Dutch Rent Caps 2025: What a 4.4% Private Sector Increase and 6.1% Mid-Market Rise Mean for You
Discover how rent caps in the Netherlands will change in July 2025, with private sector rents set to rise by 4.4%, mid-market by 6.1%, and social housing by 4.1%. Learn what this means for tenants and landlords.
NL Rental News
Housing Shortage Widens Generational Gap: Gen Z Loses Confidence
Gen Z in the Netherlands is the first generation since the 1950s to lose confidence in buying a home amid a deepening housing shortage. This article explores the generational divide and the key factors shaping today’s housing market.
NL Rental News
Dutch Government Greenlights Rent Increase of 4.1% to 6.1% for 2026
Learn about the Dutch government’s approved maximum rent increases for 2026 across social, mid-range and private sectors and how tenants can prepare.
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Dutch Government Greenlights Minimum 4.1% Rent Hikes for 2026 Across All Housing Sectors
The Dutch government has approved maximum rent increases for 2026: 4.1% for social housing, 6.1% for mid-range rentals, and 4.4% for the private sector.
NL Rental News
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Understand Dutch rental terms before you sign the lease.
Renting in the Netherlands comes with unique rules, legal phrases, and housing abbreviations that can be tricky. The Luntero Rental Glossary is your guide to every rental term — from tenancy agreements, deposits, and agency fees to utility charges, rent control, and tenant rights. Whether you’re new to renting, moving as an expat, or just want to avoid hidden costs, our glossary helps you rent smarter, negotiate better, and protect yourself from mistakes.
Housing Shortage Widening the Generation Gap in the Netherlands
The Dutch housing market is facing a persistent shortage of available homes, pushing sale prices and rental rates ever higher. While affordability has become a national concern, a new study by ING reveals that Generation Z is feeling the pressure more acutely than any other cohort. In fact, they are the first young generation since the 1950s to lose confidence in entering the housing market—a trend with broad implications for renters, first-time buyers, landlords, and policymakers alike.
The Post-War Trend vs. Today’s Reality
For decades following the reconstruction era after World War II, homeownership steadily grew among young Dutch households. Buying a house was considered a rite of passage: single incomes could cover mortgages, families settled in their starter homes, and a property often lasted a lifetime.
“Homeownership in the Netherlands became increasingly normal in the decades following the post-WWII reconstruction. This trend is now being broken with Generation Z,” says Wim Flikweert, housing researcher at ING. Instead of steady growth, the current market is marked by supply constraints, steep price rises, and regulatory complexities that were largely absent in the post-war period.
Generation Z: Facing Unprecedented Uncertainty
According to ING’s survey:
55% of Gen Z worry whether they will ever afford a home.
58% expect they’ll have to make continuous compromises on size, location, or amenities.
55% of millennials also fear high costs, with 53% bracing for ongoing sacrifices.
For many young people, city living—long the domain of dynamic rental communities—is becoming a distant dream. Rising property prices mean that apartments in Amsterdam, Utrecht, and The Hague are out of reach without significant financial backing or major compromises on space.
The Role of Family Support in Buying a Home
One striking finding is the reliance on parental or family assistance among young buyers. In Generation Z, nearly one in three first-time buyers needed help covering down payments or mortgage guarantees. Millennials follow at 20%, while Generation X and baby boomers relied on family support at only 7% and 6%, respectively.
This shift reveals two key dynamics:
Intergenerational Wealth Transfer: Younger buyers increasingly depend on gifts or loans from parents to reach minimum down payments or secure better mortgage terms.
Growing Socioeconomic Divide: Those without access to family wealth face even tougher barriers, potentially widening inequality over time.
Comparing Generations: Compromises and Sacrifices
In the 1950s and 1960s, a single income often sufficed to purchase a modest starter home—suitable for newlyweds and small families. Today, dual incomes are almost mandatory just to qualify for a basic mortgage. SIZE and permanence have also changed:
Then: A first home might be 80–100 square meters and serve a family for decades.
Now: Starter homes can be as small as 40 square meters, often leading to multiple moves before settling down.
“Previously, you could buy with one income. Now you see that two incomes are needed,” Flikweert notes. “Moreover, a large proportion of the post-war generation still lives in the house they bought back then.”
Young buyers are not only trading space; they’re trading lifestyle flexibility. Many report sacrificing free time for extra work or side gigs to boost savings—and that’s before considering higher interest rates or stricter mortgage requirements.
What Lies Ahead for First-Time Buyers?
The housing shortage isn’t going away overnight. Construction levels, once poised to rise, have stalled amid regulatory delays and rising building costs. As a result, demand outpaces supply while prices continue upward.
Potential developments on the horizon include:
Incentives for Social Housing Construction: The government and woningcorporaties (municipal housing associations) may expand affordable rental stock to ease pressure on ownership.
Mortgage Regulation Adjustments: Authorities could review loan-to-value ratios or amortisation rules to make mortgages more accessible for young buyers.
Regional Growth Policies: Smaller cities and suburbs may see targeted investments to relieve pressure on major urban centres.
Despite these measures, prospective first-time buyers must be prepared to adjust expectations—whether that means looking further from city centres, exploring shared ownership models, or considering long-term rental options.
Conclusion
Generation Z’s waning confidence in the housing market underscores a wider challenge: balancing supply and demand in a country where bricks and mortar have never been more coveted. As long as construction lags and prices rise, today’s young adults will face the dual hurdles of affordability and compromise.
Finding your ideal rental or starter home has never been more competitive. Explore thousands of verified listings on Luntero—the easiest way to navigate the Dutch housing market and secure your next home.
Luntero Rental Glossary
Understand Dutch rental terms before you sign the lease.
Renting in the Netherlands comes with unique rules, legal phrases, and housing abbreviations that can be tricky. The Luntero Rental Glossary is your guide to every rental term — from tenancy agreements, deposits, and agency fees to utility charges, rent control, and tenant rights. Whether you’re new to renting, moving as an expat, or just want to avoid hidden costs, our glossary helps you rent smarter, negotiate better, and protect yourself from mistakes.
