Young people up to 34 years old with a private rental property are spending an increasing portion of their income on housing expenses. On average, this amounts to 46 percent. Ten years ago, it was 39 percent.
According to a study by ING, young people pay an average of 1,185 euros in housing costs for a private rental property. This includes not only rent, but also things like energy, water, and taxes. Any rent allowance has been deducted.
More than a third of young households (38 percent) are in this situation. Ten years ago, that percentage was 24 percent. The proportion of young people in owner-occupied homes or rental properties from corporations (which are cheaper than private rental properties) has actually decreased.
This is because the supply of corporate housing has increased by only 0.7 percent since 2015, while there are 10 percent more households that qualify for such a home. The waiting lists have become longer.
Another problem is that many young people do not earn enough money to buy a house. The only other option is private rental, the supply of which has increased significantly in the last ten years.
Private Rental Properties Are Declining
Incidentally, the supply of private rental properties is now also under pressure because many landlords are putting their properties up for sale. Changed rules make renting out homes less attractive. As a result, fewer private rental properties remain and rents continue to rise.
Peers with an owner-occupied home or a social rental home spend considerably less each month. For young homeowners, 28 percent of their income goes to mortgage and other housing costs. Young people in a corporate home pay an average of 680 euros per month, which amounts to 31 percent of their income.
The ING study shows that the affordability of housing costs is less of a problem for older groups. For example, a relatively large proportion of them live in an owner-occupied home. In addition, they generally have a higher income.