Dutch households are allocating a smaller portion of their income to housing expenses compared to five years prior, according to recent data from the national statistics agency CBS. This decrease is primarily attributed to income growth outpacing the rise in housing costs between 2018 and 2023, the CBS reported.

Tenants in housing corporation properties experienced the most significant improvement, with housing costs decreasing from 31% to 25.4% of their income. Homeowners and private-sector tenants also observed a slight reduction in the percentage of income dedicated to housing.

In terms of actual monetary amounts, monthly housing bills have increased. Private sector rental tenants have faced the largest increase, with costs rising by 23% since 2018. Homeowners’ costs increased by 6%, while housing corporation tenants experienced an 11% rise.

Government interventions, including measures to cap energy costs and freeze rents in the social housing sector during the coronavirus crisis, helped mitigate increases for many tenants, the CBS stated.

However, a recent proposal to freeze social housing rents for two years to assist low-income households was abandoned this week, and rents are now set to increase by 5% in July.