Economy
- 4.2
  
  Economic growth
- 9.3
  
  Unemployment
- 4.5
  
  Inflation
Housing
- 9.3
  
  Market liquidity
- 8.3
  
  Rental prices
- 2.8
  
  Transaction prices
Consumers
- 3.8
  
  Consumer confidence
- 2.0
  
  Affordability
- 6.7
  
  Satisfaction
Sustainability
- 7.0
  
  CO2 emissions
- 5.9
  
  Renewable electricity
- 9.0
  
  GRESB
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Housing Market Indicator

overall score, actual per Q2 2024
- Consumers
  4.2
- Economy
  6.0
- Sustainability
  7.3
- Housing
  6.8

Housing Market Indicator

HMI underscores relatively stable market conditions | In the second quarter of 2024, the Housing Market Indicator (HMI) held steady with a score of 6.1.

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6.1

Housing Market Indicator

overall score, actual per Q2 2024

About the Housing Market Indicator

The Dutch housing market is one of small proportions but with many faces. Addressing and interpreting the differences in the right way is key for investors. As an objective indicator of the current market situation we developed the Housing Market Indicator (HMI). This tool provides a quick but thorough overview of the Dutch housing market from a residential investors perspective. The HMI will be updated twice a year.

The HMI is made up of 12 key determinants. Not only economic and housing market developments are included, developments in the field of sustainability and the situation of Dutch (residential) consumers are also important factors. The rental housing market and the satisfaction of tenants in the important middle segment of the housing market are reflected in the HMI. This unique composition of factors constitutes an indicator which offers a solid reflection of the elements that are important for Vesteda as a residential investor and for other investors.

The 12 drivers of the HMI are divided into 4 different quadrants with 3 drivers per quadrant. The 12 drivers are scores on a scale from 1 to 10, based on the best available data. We believe transparency is very important, that is why we only used public-data. It should be noted, however, that with some drivers the data lags behind the market situation as no recent data is available. To arrive at a score, the data has been placed in historical perspective as far as possible. On some drivers, there is little historical data available which means only data from recent years is used. The data from most drivers was then scored on a 10-point scale where the historical lower and upper limits were determined as the maximum range. Only on the drivers GRESB and customer satisfaction are the actual scores used. The average of the scores on the 12 drivers was then used to calculate a final score. As the indicator only contains historical data, predictions are not included in the HMI.

As the manager of the largest residential fund in the Netherlands, Vesteda believes it is important to increase the knowledge on the Dutch residential investment market and to promote transparency. With the Housing Market Indicator, Vesteda therefore offers more insight into current market developments on the Dutch housing market.

Housing Market Indicator

HMI underscores relatively stable market conditions | In the second quarter of 2024, the Housing Market Indicator (HMI) held steady with a score of 6.1. This consistent and slightly increasing score indicates relatively stable market conditions, though still somewhat fragile.

Affordability and rental prices | The primary factor behind this quarter's rise is a notable improvement in the consumer quadrant's affordability score, even though overall affordability remains low. The ongoing increase in rental prices continues to reflect the pressure within the housing market. The upward trend in sale prices has yet to be fully captured by the HMI.

Combination of influences | There is no specific factor that detracted from the HMI score this quarter. However, the significant improvement of the affordability score is dampened due to a combination of influences such as economic growth, inflation, renewable energy advancements, and market liquidity.

Overall | Overall, the HMI points to a market that is maintaining stability amid various influences. There seems to be a basis for an increase in the HMI in te coming period, meaning an improvement of the market conditions relevant to institutional housing investors in the Netherlands. However, there is considerable uncertainty about the predictions for the coming period, mainly due to turbulent geopolitical developments.

Economy

Housing

Consumers

Sustainability

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