Homebuyers in the Netherlands Now Need €160,000 in Savings to Afford a Hous
As house prices in the Netherlands continue to climb, buying a home is becoming increasingly difficult for many Dutch residents. According to research by price comparison site Independer, prospective homeowners now need an average of €160,000 in savings to cover the gap between what banks are willing to lend and the actual cost of houses.
Why Homes Are So Expensive
The average house in the Netherlands currently costs over €520,000, while the typical mortgage a buyer can secure is only about €360,000. This leaves a significant shortfall that must come from personal savings, which has grown 28% in just six months. Despite these high costs, demand remains strong, with mortgage applications rising 20% in the third quarter of 2025.
Experts say several factors are driving the price surge: a long-standing housing shortage, low interest rates over previous years, and high demand in urban areas like Amsterdam, Rotterdam, and Utrecht. Even with these pressures, buyers continue to enter the market, partly because renting has also become expensive, leaving homeownership as the preferred long-term option.
Dual-Income Households Have an Edge
Couples and dual-income households are better positioned to handle the rising costs. They can typically borrow around €475,000, leaving a smaller gap of about €45,000 to cover with personal savings. Mortgage expert Marga Lankreijer-Kos notes that since not every home costs €520,000, dual-income buyers can still find opportunities in the market, especially for smaller homes or properties outside city centers.
Single-Income Buyers Struggle
Single earners face far steeper challenges. With mortgages averaging just over €300,000, they can afford only about 2% of homes on the Dutch market. Competition is fierce, as they are often bidding against couples or families with higher combined incomes, making it increasingly difficult to secure a property without substantial savings.
Housing Shortage Shows No Signs of Easing
The Netherlands continues to face a severe housing shortage, with new construction often falling short of government targets. Urban areas are particularly affected, and waiting lists for affordable housing remain long. Lankreijer-Kos advises buyers to use as much of their own funds as possible and to explore programs aimed at first-time buyers, former students, or smaller-scale developments.
Additionally, consulting local mortgage advisors is recommended, as they are typically well-informed about recent developments in the housing market and can provide practical guidance on navigating competitive conditions.
The Bigger Picture
This trend highlights broader challenges in the Dutch housing market. Rising house prices combined with mortgage limits mean that homeownership is increasingly out of reach for single earners and low- to middle-income households. Analysts warn that without a significant increase in new housing supply and targeted policy interventions, these affordability issues are likely to persist for years to come.
