February 12, 2026

The stalled housing market can only be revitalized with cross-sector policy and explicit choices. In a new Perspective on the Housing Market, the Central Planning Bureau (CPB) shows that measures in one part of the housing market affect other sectors. Additional support measures can increase scarcity, and affordable construction inevitably requires choices about location and subsidies.

The problems in the housing market are large and widely felt. More and more households have no home, pay too much for housing, or are stuck in a house that does not fit their life phase. Despite this broad social concern, policymakers find it difficult to solve these problems. The CPB therefore developed a Perspective on the Housing Market: an analytical framework in which the CPB describes how the distribution of living space and the emergence of housing supply are interconnected, and how government policy influences these processes. The publication aims to bring structure to the debate on the housing market and to better clarify policy choices and their consequences. The CPB makes four recommendations for housing market policy.

Consider the housing market in context

The position of households in the housing market is strongly related to their access to social rent, private rent, and ownership. These sectors influence each other: those entering a regulated or subsidized segment move up the housing ladder, but others are unintentionally squeezed. For example, the Affordable Rent Act leads to fewer rental homes and also disadvantages households that cannot buy a home. Effective housing market policy therefore requires a cross-sector approach.

Reduce benefits for insiders

Helping home seekers or other focus groups does not automatically require new support measures. Additional support increases demand for scarce housing and raises market pressure. Because many insiders already benefit from advantages, it makes more sense to reduce these. This improves outsiders chances and reduces scarcity.

Choose where we want to build affordably

Outside the city, affordable homes can be built more easily than inside the city. Lower incomes then find a home, but more often in a less favorable location. Cities thus become less accessible to lower incomes. Government subsidies can also build affordable homes in attractive, inner-city locations. But subsidizing will further fuel demand for urban housing.

Make the housing market more flexible

Housing demand changes faster than supply and is often difficult to predict. Because demographic developments are uncertain and have been underestimated in the past, flexibility is crucial. As long as the response to changing demand conditions remains slow, the housing market remains vulnerable to shortages. Shorter procedures, adaptable building plans, and stable policy help to respond faster and prevent future housing shortages.

If you have questions regarding this publication, contact us.