Understanding the Housing Rental Pricing Structure in the Netherlands

Tulips, bicycles, and windfmills...the charm of the Netherlands may have you asking yourself: "Should I live here?"

By ​Darien Wilson  23 July 2025

The Dutch Housing Crisis: What Changed in 2024?

Tulips, canals, bicyles...what's not to love about the Netherlands? Many folks visit the Netherlands and immediately ask themselves: "Should I live here?"

Unfortunately, moving to the Netherlands is more challenging than visiting, because the Netherlands is in the midst of a housing crisis. Demand far exceeds supply, especially in popular cities like Amsterdam, Utrecht, Leiden, and The Hague.

In response to the housing crisis, the Dutch government introduced the Affordable Rent Act (Wet betaalbare huur) in 2024. This law redefined how rental homes are categorized and regulated.

From 2024, there are three main categories of housing in the Netherlands:

1. Social housing – For low-income residents; tightly regulated with low rents. Waiting lists can stretch over 10 years, and this housing is typically not available to many international residents, including Americans on DAFT residence permits.

2. The middle segment – Moderately priced housing, newly regulated under the Affordable Rent Act.

3. The free sector (vrije sector) – Market-rate rentals. Landlords are free to set the price based on market demand.

   
   

What Determines Whether a Property Is Regulated?

The government uses a points system (or, in Dutch, woningwaarderingsstelsel) to evaluate every rental property. Points are awarded based on objective factors like:

• Square meters of living space

• Number and size of rooms

• Energy label (A, B, etc.)

• Amenities (like kitchen appliances, balconies or private gardens)

• WOZ value (the property assessment set by the municipality)

In 2024, the Affordable Rent Act expanded pricing regulation to properties with up to 186 points:

• 0-143 points: social housing

• 144 to 186 points: now regulated as middle-sector rentals, with rents set between €879.67 and € 1.157.95.

• 187 points and pricing above €1.157,95: free sector (unregulated)

So if a property has 187 points or more, it falls into the free market. In the free sector, landlords can charge whatever rent the market will bear.

Unfortunately, new laws intended to help renters ended up causing many landlords to sell off their rental properties. The decrease in supply has led to even more pressure on the rental market, in particular in the free sector. This is covered in detail in a recent article by Pararius, a website that lists available properties in the Netherlands.

If you are new to the Dutch housing market, you may be surprised at both the high prices and the small amount of space. The Netherlands is the 26th most densely populated country in the world, and one of the most densely populated countries in Europe, so land is at a premium. Unfortunately, acquiring housing in the Netherlands can be quite challenging.

Want to learn more?

Here's a simple explainer from the Dutch government (in Dutch): Wat betekent de Wet betaalbare huur voor mij?

Housing policy in the Netherlands evolves all the time, so for the most up-to-date and accurate information, refer to official Dutch government websites. If you don’t read Dutch, browser translation tools can help you read full pages in English. If you do end up moving to the Netherlands, you'll find these translation tools come in handy all the time while you're getting up to speed on your Dutch.

If you’d like help finding a home in the Netherlands, I’d be happy to assist. Feel free to get in touch!

© 2025 ​Darien Wilson All Rights Reserved