Why More Internationals in the Netherlands Are Buying Homes Amid Rental Shortages

Why More Internationals in the Netherlands Are Buying Homes Amid Rental Shortages

The Dutch housing market has long been a challenge for newcomers, especially those seeking a rental home. In recent years, tight rental availability and rising rents have pushed many internationals to consider buying their own property. According to data from the Dutch Association of Real Estate Agents (NVM), the share of internationals purchasing homes in the Netherlands has doubled—from 0.8% in 2020 to 1.6% in the first half of 2025—even as it dipped slightly from 1.8% in 2024.

In this article, we explore the key factors behind this trend, its regional variations, policy debates such as the 30% ruling, and why, despite media headlines, internationals still represent a small fraction of the national market.

Rental Shortage Drives Purchase Decisions

The shortage of rental properties—particularly in urban centres like Amsterdam and The Hague—has made it increasingly difficult for internationals to secure long-term leases. High demand and limited supply fuel steep rents, leading 60% of real estate agents to report that clients who initially wanted to rent ultimately decided to buy when rental options ran out.

Key drivers pushing internationals toward homeownership include:

• Scarce rental stock: Many municipalities report over 80% occupancy rates in popular expat neighbourhoods.
• Rising rents: Annual rent increases often outpace wage growth, making monthly mortgage payments more competitive.
• Long-term plans: Those intending to stay in the Netherlands longer than three years see homeownership as more cost-effective than fluctuating rent.

The Role of the 30% Ruling

A crucial consideration for many highly skilled migrants is the so-called 30% ruling—a tax advantage granted by the Dutch Tax and Customs Administration that allows eligible internationals to receive up to 30% of their salary tax-free for a maximum of five years. This benefit often boosts their mortgage borrowing capacity, making purchasing more affordable than renting.

Official information on the 30% ruling can be found on the Dutch Tax and Customs Administration website: 30% ruling (Belastingdienst).

Regional Hotspots and Market Impact

Though internationals have a growing presence in the housing market, their impact is highly localised. Nationally, fewer than 2% of owner-occupied homes are bought by non-Dutch buyers. However, certain cities and neighbourhoods have seen much higher concentrations:

In the rental sector, 85% of all transactions involving internationals occur in just two municipalities—Amsterdam and The Hague—out of the country’s 342 municipalities.

Debates Around Expat Influence

Some Dutch organisations, including the Tenants’ Association (Woonbond) and several labour unions, have criticised the 30% ruling and argued that internationals drive up property prices. They claim that tax breaks for expats create “unfair situations” for Dutch first-time buyers.

However, independent experts and even a United Nations official have pointed to structural issues—such as insufficient new builds and restrictive zoning policies—as the real causes of the housing shortage. With internationals accounting for less than 2% of all home purchases nationally, their overall impact remains limited compared to domestic demand.

Internationals’ Profile and Buying Patterns

Data from NVM shows that internationals typically seek move-in-ready properties with modern finishes. Average purchase prices for these buyers are slightly higher than those paid by Dutch residents: €591,000 versus €575,000. Many international buyers resemble dual-income Dutch couples in terms of job security and income, further narrowing any perceived gap between expat and local demand.

Key characteristics of international buyers:

• Employed in sectors facing labour shortages (IT, engineering, academia)
• Planning to stay more than three years
• Eligible for the 30% ruling, enhancing mortgage capacity

What the Future Holds for the Housing Market

Despite the shift towards buying, the majority of internationals still rent. Rental barriers remain high, but government initiatives aiming to increase housing stock—including new social and private builds—should eventually ease pressure on both buyers and renters.

Real estate professionals recommend that internationals start their search early, familiarise themselves with local market conditions, and consider hybrid solutions such as lease-to-buy or purchasing through a woningcorporatie (social housing corporation) if eligible.

Finding the right home in the Netherlands can be complex, but with the right strategy and a clear understanding of your options, internationals can secure both affordable rentals and owner-occupied homes.

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