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Dutch Rental Market 2025: Shrinking Supply and Rising Barriers for Newcomers
The Dutch rental market is under mounting pressure. On one hand, the supply of rental homes is declining rapidly, while demand keeps growing and rents are increasing at a record pace, according to the Pararius Rental Report Q2 2025. On the other hand, recent research by RTL Nieuws and Linda.meiden shows that younger home seekers in particular face not only affordability issues, but also unfair and even fraudulent practices, adding another layer of difficulty for both international starters and expats arriving in the country.
For companies hiring international talent, as well as the expats themselves, these dynamics are shaping relocation decisions and complicating the housing search process.
Dutch Rental Market Overview
The shrinking availability of mid-range rentals is often linked to the Affordable Rent Act, introduced in July 2024. By creating a new tier of price-capped housing between the social and free sectors, the law has been associated with more landlords choosing to sell their properties rather than rent them out. This trend, known as “uitponding”, has also been flagged by the Dutch Association of Real Estate Agents (NVM), which warns that continued sales from the rental stock are putting additional pressure on the market.
The imbalance between supply and demand is visible in the data. Each property listed now receives record levels of interest. At the same time, prices continue to climb. In Q2 2025, the average private-sector rent rose to €1,830 per month—up 17.4% year-on-year. To qualify for such a home, tenants typically need a gross monthly income of at least €5,490, in line with the industry standard of 3–4 times the monthly rent. This threshold is €800 higher than just one year ago, creating additional barriers for newcomers and young professionals.
Beyond rising rents, recent research highlights how particularly difficult the market has become for younger home seekers. Research by RTL Nieuws and Linda.meiden found that one in three people under 35 encountered unfair or even fraudulent practices while searching for housing. Many are asked for illegal prepayments, excessive deposits, or even face fake listings.
Implications for Expats and Employers
For international talent moving to the Netherlands, these market dynamics translate into very real challenges. Expats often face additional hurdles compared to local tenants: limited ability to view properties in person, the need to secure housing before arrival, and stricter scrutiny around income requirements.
For international young professionals in their late 20s or early 30s, these barriers can be even more daunting. Without a local network, Dutch language skills, or deep knowledge of tenant rights, they are at higher risk of encountering scams during their relocation.
For HR and global mobility managers, this means that housing has become a critical factor in relocation planning—affecting not only the employee’s landing experience but also the employer’s ability to attract and retain talent in a highly competitive labor market.
Supporting a Successful Relocation
At Expat Management Group, we closely monitor the Dutch rental market to support both employers and their international hires. Through our Home Search Coaching Program, expats gain guidance on setting realistic budget expectations, crafting strong rental applications, understanding landlord requirements and income thresholds, and increasing their chances of securing suitable housing even before arriving in the Netherlands.
In such a challenging market, trusted guidance makes all the difference. By working with experienced relocation specialists, expats and employers can avoid common pitfalls, steer clear of unfair practices, and secure housing solutions that are both legitimate and sustainable.
With mid-range rental supply shrinking, demand intensifying, and rents climbing at record rates, 2025 has highlighted the challenges of the Dutch housing market. For employers, this means factoring housing into relocation planning; for expats, it means approaching the search with the right knowledge and guidance. To learn more about how our Home Search Coaching Program supports successful relocations, get in touch with our team 📩 relo@expatmanagementgroup.com.
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