7.6

Housing Market Indicator

overall score, actual per Q1 2018

Housing Market Indicator

The Housing Market Indicator in the first quarter of 2018 hits a level of 7.6. This score clearly reflects the positive situation on the Dutch housing market. The index is mainly driven by economic developments and the situation on the housing market. Solid economic growth, low unemployment numbers and above-average price developments are the main drivers. The lack of supply versus the increasing Dutch population puts more and more pressure on the housing market.

Furthermore, we see positive developments from a consumer-perspective. Consumer confidence is high and customer satisfaction is developing in the right direction. However, affordability for consumers in the housing market is a subject of concern. Though historically and on a national level it seems there is not much going on yet, there is an increasing number of households running out of housing options in the larger cities. This applies particularly to households in the lower part of the middle-income class.

Another area of concern is the sustainability. Albeit the score is a reasonable 6,2, developments in the Netherlands on this matter remain limited. It is true that the share of 'green' energy that we use is increasing and the performance on energy labels and GRESB scores are also improving, the pace at which this is happening is still low. We wonder whether the measures taken by the government, large companies and the consumer will be sufficient to trigger the so needed acceleration.