The number of inhabitants in Amsterdam has shrunk by 3,400 since March. This contraction is expected to continue and that will have consequences for the economy, reports Het Parool.
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Previously, about ten thousand inhabitants were added every year. It was even expected that in about fifteen years’ time we would be one million Amsterdammers.
The corona crisis put a stop to this development, but the population in the city has shrunk since March, according to figures from Statistics Netherlands. There was a revival for a while in August; then about 1,100 new people came to live in the city. But there is no question of a change, says Dutch housing market economist Mirjam Bani of ING. ‘Traditionally, many people come to Amsterdam in August, such as students. But the increase this year was about half that in 2019, ‘she tells the newspaper. The expert does expect that the population decline will continue for the time being.
Labor migration has virtually come to a standstill
The cause of the shrinkage is that fewer immigrants are coming to live in cities because of the corona crisis. Expats in particular come to the capital less often. Many companies have to cut back and that has an impact on the international labor market. In recent years, immigration has been the main reason behind population growth.
Another factor is that many residents are leaving the city. For years, many Amsterdammers have moved to another municipality, for example because they want more space or because a larger home is unaffordable. This exodus is bigger than ever and also seems to be getting a boost from the corona crisis. Since March, 25,634 Amsterdammers have moved to another municipality in the Netherlands. That is a thousand more than in 2019.
Economic consequences
According to Bani, the contraction is bad for the Amsterdam economy. For example, people spend less in stores. In addition, labor migrants are generally purchasing power. According to ING, 66 percent of labor migrants have a medium to high income, compared to 46 percent of the Amsterdam population.
Due to the contraction, the pressure on the housing market is easing, but according to the expert, this will not immediately lead to price decreases. “The shortage on the Amsterdam housing market remains above average,” the economist told the newspaper.
Last Thursday, it was revealed that house prices in Amsterdam are still rising, despite the crisis.
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