The housing market in the Netherlands

Windy Vandevyvere and Andreas Zenthöfer

No 457, European Economy - Economic Papers 2008 - 2015 from Directorate General Economic and Financial Affairs (DG ECFIN), European Commission

Abstract: The Dutch housing market has been shaped by highly interventionist public policies spanning over several decades. Direct and indirect government intervention in the housing market through spatial planning and land policy, regulation and supervision of housing associations, rent policy and financial guarantees, generous mortgage interest deductibility and other explicit or implicit subsidies have led progressively to entrenched structural problems, which have negative consequences for the economy as a whole. Given the relatively rigid supply, price developments have been determined in particular by fiscal incentives and demand factors, under which innovations in mortgage financing have played a particularly important role, so that, compared to other euro area members, the Netherlands has relatively high levels of leveraged housing wealth. We conclude with possible reforms that would increase the efficiency of the Dutch housing market by addressing distortions in a gradual fashion while still achieving social policy objectives.

JEL-codes: E6 G21 H2 H31 H6 R3 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2012-06
New Economics Papers: this item is included in nep-mac and nep-ure
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:euf:ecopap:0457

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