7.2

Housing Market Indicator

overall score, actual per Q1 2021

Housing Market Indicator

The Housing Market Indicator of Q1 2021 recovers to 7.2, from 6.7 in Q3 2020; the Dutch economic rescue package seems to work.

The increase of the HMI is mainly caused by the economic drivers: inflation picking up again to 1.8% and the unemployment rate being very low at 3.6%. For the time being, the current lockdown appears to have a lower impact on large parts of the Dutch economy than last year’s lockdown.

Since the beginning of this year two out of three sustainability drivers are changed. Energy label has been replaced by CO2 emissions and green energy became renewable electricity. The drivers are strongly linked with each other but are updated more often.

CO2 emissions dropped massively in the last year.  A large part of the decline can be attributed to lower coal consumption in the electricity sector and less transport movement and less traffic caused by  the Covid-19 crisis. The production of renewable energy increased enormously. The increase in wind energy is related to the expansion of two large wind farms. Wind energy accounted for the largest share of renewable electricity generation.

Meanwhile, the housing market remains in full swing. Price levels on the owner-occupier and rental market are still rising, mainly as a result of the enormous scarcity. Only the high rental segment is showing an easing trend on the demand side.

The negative rating on the consumer side indicates that the recovery is still fragile. The affordability of housing is under pressure and consumer confidence is negative. Covid-19 still dominates most of our lives and the economy is largely kept afloat by government support.