Why expats should act quickly and realistically in Amsterdam’s housing market.
Finding an apartment in Amsterdam is tough, especially for expats. The city’s popularity, combined with a severe housing shortage, has made securing a rental a daunting task. If you’re lucky enough to receive an offer, it’s often best to accept it without delay. Here’s why.
The Challenge of Amsterdam’s Housing Market
Amsterdam’s appeal has led to a housing crisis where demand far exceeds supply. For expats unfamiliar with the local market, this situation is particularly challenging. The competition is fierce, rents are high, and the search can drag on for months. This blog post aims to explain why it’s crucial for expats to understand the market dynamics and act quickly when an opportunity arises.
The Impact of the Affordable Housing Act
Due to recent government measures, many landlords can no longer provide properties for rental purposes, especially in the private sector. The Affordable Housing Act (Wet Betaalbare Woningmarkt), which took effect on July 1, 2024, was introduced to make housing more affordable in the Netherlands. However, these measures have drastically reduced the rental supply, particularly in the lower and middle-market segments. As a result, there are virtually no affordable apartments left in these categories, and the number of responses per available property has skyrocketed, making the market even more competitive. This also unfortunately leads to renters having to overbid already unreasonably right rent prices, in an attempt to stand out from the crowd.
Realtors and professionals in the field now report that finding an apartment in Amsterdam for less than €2,000 per month is nearly impossible. If your budget is below this threshold, it’s important not to waste time searching within the city. Instead, you should broaden your search to areas just outside Amsterdam, where rental prices are more manageable and availability is slightly better.
Be Realistic: Key Considerations for Expats
- Limited Availability: The housing supply in Amsterdam is extremely tight compared to the overwhelming demand. Waiting for a better option can result in overpaying for long hotel stays or leaving the country entirely.
- Intense Competition: The number of rental properties in Amsterdam has been dropping from approximately 7,000 to 2,500 per quarter in the last two years. The number of reactions that estate agents receive when listing properties online has multiplied by twenty in this period. Oftentimes the agents do not post such listings online as they don’t want to be overwhelmed with the emails, resulting in off market listings that the majority do not have access to.
- Legal Changes: The new housing regulations, specifically the point system that no longer allows the landlords to price their property higher than a certain amount if they do not meet the requirements, has drastically reduced the number of rentals on the market. This is because it is no longer financially feasible for the landlords to keep renting, thus forcing most of them to sell.
- Income Requirements: Many landlords require proof of income that is three times the monthly rent for single earners and four times the rent for dual earners. Most of the time the income also has to come from The Netherlands, not overseas. To add to this most landlords if given the choice also do not want to have any additional risk with house sharing, guarantors, students or pets. And given the fact that they have plenty of choice, you can be assured that they will pick the candidate that imposes the least risk. It is important to ensure that you understand all these dynamics before starting your search to avoid unnecessary disappointment.
- Consider Living Outside Amsterdam: Given the scarcity of housing in the not so large city, being open to living in nearby towns or suburbs can significantly increase your chances of finding a suitable and affordable place. Locations just outside Amsterdam offer more options and are still well-connected to the city center.
Final Thoughts for Expats
Amsterdam is a fantastic city to live in, but finding housing here is no easy feat. With the current market conditions and recent legal changes, acting swiftly and realistically on any apartment offer is crucial. Be prepared to meet income requirements and consider broadening your search to areas outside the city to increase your chances.
We hope this blog post provides clarity on why it’s important to secure a rental quickly in Amsterdam’s challenging housing market. For more details on the Affordable Housing Act and its implications, click here. If you need further assistance, our team is ready to help make your move to Amsterdam as smooth as possible.
