The house-price-to-income ratio in the Netherlands was equal to 146.1 index points in the third quarter of 2022, making it one of the countries worldwide, where house prices have risen the most in comparison to income in recent years. The ratio measures the development of housing affordability and is calculated by dividing nominal house price by nominal disposable income per head, with 2015 set as a base year when the index amounted to 100. Index value of 120, for example, would mean that house price growth has outpaced income growth by 20 percent since 2015. Overall, house prices grew faster than incomes in most of the countries.
Spotlight on the Netherlands
House prices varied widely across different provinces in the Netherlands, with Utrecht, North Holland, and South Holland being the most expensive provinces for a home purchase. In Utrecht, the average house price was double the price of a comparable property in the most affordable province, Drenthe.
How much have prices risen in the Netherlands?
Though residential property prices in the Netherlands have been on an upward trend since 2014, in January 2022, the annual house price appreciation hit 21 percent. In 2022 and 2023, the growth of house prices is forecasted to continue, albeit at a slower pace.
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