So far, Groningen has managed to fulfill the agreements from the regional housing deals. However, the realization of the remaining task is becoming increasingly uncertain due to multiple bottlenecks. For most bottlenecks, intensive cooperation is required and municipalities need sufficient financial resources to make the necessary investments.
Five Key Preconditions
Groningen not only faces a new construction challenge. Investments must also be made in existing homes, neighborhoods, and villages. Moreover, this is seen as a lever for new construction. It is estimated that the majority of new construction can be realized within existing neighborhoods and villages. To enable this, long-term national funding is necessary.
Public Non-Profitable Investments
Additional funding from the national government is also needed for new construction on new housing locations. There is a financial gap between the costs municipalities must incur to prepare areas for housing and the revenues from those locations. At the same time, Groningen municipalities often do not qualify for national funds because the projects are considered too small.
Municipalities themselves lack sufficient financial capacity to cover these deficits. This is separate from the investment possibilities of housing corporations. For the coming years, they can still meet the agreements made. However, after that, the room for new investments decreases. This affects new construction, the sustainability of existing homes, and the affordability of social rental housing.
More Administrative Experts
The third bottleneck is that especially smaller municipalities find it difficult to attract enough experts. As a result, projects are developed later or permits are granted later. Therefore, it is necessary that municipalities receive sufficient and structurally guaranteed funds from the national government.
Spray Zoning
Clarity is needed about the distance to buildings that must be maintained when using crop protection. Taking spray zoning into account leads to delays and higher costs in the development of a construction project. Additionally, national bottlenecks such as grid congestion and sufficient nitrogen space are increasingly playing a role in Groningen.
De Eendracht
In the restructuring of De Eendracht, the municipality of Eemsdelta also faces bottlenecks. The site of the former cardboard factory is being converted into a residential area. However, the investment needed to build homes here is higher than the future value of the homes. More administrative capacity is needed to realize additional new homes. Increasingly, new homes cannot be connected to the electricity grid.
