Measures Needed to Address €19.4 Billion Shortfall for Housing Corporations

The goal includes building 30,000 new social rental homes annually from 2029 and implementing sustainability measures in 1.1 million homes by 2034. It is up to the new cabinet to increase the investment capacity of corporations in the short term to meet the NPA or take other measures, writes Minister Mona Keijzer of Housing and Spatial Planning (VRO) to the House of Representatives.

Options include increasing income, reducing expenses, for example through fiscal measures, or reducing the task. In all cases, attention is also needed for the period after 2035 to structurally strengthen the system financially. The minister is preparing an independent study on a sustainable, future earning model for corporations so that after the NPA ends in 2035, they retain financial strength to build and maintain sufficient social rental homes.

The government, housing corporations, and municipalities agreed at the Housing Summit at the end of 2024 to build 30,000 new social rental homes annually from 2029. The ambition is to achieve this already in 2027. They also focus on responsible rent increases, sustainability of homes, and livable neighborhoods. The agreements apply from 2025 to 2035.

Corporations make a significant contribution to reducing the housing shortage, according to the State of the Housing Corporation Sector 2026, which the Housing Corporation Authority (Aw) handed over to the minister this week. Nearly 23,000 new homes were realized in 2024. For 2025, about 25,000 new homes are expected. To maintain this upward trend, corporations need sufficient financial resources and building locations, according to Aw. The Housing Act strengthening housing governance, with an intended start date of July 1, 2026, can help. The law requires that 30% of new construction consists of social rental homes. Municipalities must designate locations for this.

Affordability for tenants of social corporation homes has improved in recent years. For the coming years, cost increases at corporations are expected to be higher than inflation. This leads to higher expenses and less room to invest. A bill with a new system for rent increases aims to ensure a more stable rent policy, balancing affordability for tenants and sufficient income for corporations. It is up to the new cabinet to further develop this.

Corporations work intensively together to maintain and make their homes more sustainable. Only 5.5% of the housing stock currently has a low energy label. This is expected to be about 0.13% in 2029. According to Aw, more money is needed for this goal as well.