16 Nov 2023 at 00:01
In the third quarter, 11,200 permits for new-build homes were issued. That is 27 percent less than a quarter earlier and is the smallest number in years. There was also a small contraction in the second quarter, reports statistics agency CBS.
The number of permits issued says something about how many new houses will be built in the coming years. On average, there is approximately two years between issuing the permit and completing construction.
Chief economist and spokesperson for CBS Peter Hein van Mulligen suspects that the decline is due to various causes. For example, there is a shortage of materials and personnel, which sometimes means that projects cannot start. The higher mortgage interest rate also means that home buyers can offer less, causing project developers to doubt whether they will recoup the construction costs. According to him, the nitrogen problem can also play a role.
The small number of permits is a setback for the outgoing cabinet. The aim is to build around 100,000 homes every year to reduce the housing shortage. But about 40,000 permits have been issued so far in the first three quarters.
On Thursday, ABN AMRO also released expectations for construction. They are expected to earn 2.5 percent less next year. According to the bank, architects, wholesalers and manufacturers of building materials are finding it more difficult.
The fact that construction will slow down next year is partly due to the high mortgage interest rates mentioned earlier. High interest rates also make it more difficult for companies to invest in new construction projects.
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Housing marketEconomy
2023-11-15 23:01:30
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