Rent or buy in the Netherlands: what the housing market data means for expats

Rents for new tenants in the Dutch free sector rose 4.4% in the past year, while the number of homes offered for rent fell by almost 13%. At the same time, 24% more homes are for sale, many of them former rental apartments.

For an expat, this shifts the choice: renting is getting harder and more expensive, and buying offers more choice but at higher mortgage rates than a few years ago. This article reviews the data on rents, the sales market, and interest rates, and ends with the pros and cons of renting and buying.

This article is written by Luc Zwaan, our mortgage advisor at OHAO, who helps expats and internationals navigate the Dutch mortgage and housing market. Do you want to discuss your own situation? Contact us.

What is happening to rents in the big cities?

Rents are rising in all five big cities. New tenants in the free sector paid an average of €20.92 per m² in the third quarter of 2026, according to the Pararius rent monitor. Amsterdam is the most expensive city at €28.56 per m², and Rotterdam and The Hague are rising fastest.

Table showing rents for new tenants in the free sector, third quarter of 2026. Rent per m² and change from Pararius; the monthly amount is a calculation for a 75 m² home.

Within Amsterdam, the differences are large. Earlier this year, the city centre (Centrum) was the most expensive district at €32.19 per m², and Zuidoost the cheapest at €22.78, Het Parool reported, based on Pararius figures, with rents up in every district. For a 60 m² apartment, that is about €1,931 per month in Centrum and €1,367 in Zuidoost.

The rent is only half the hurdle. Landlords usually ask for a gross monthly income of at least three times the rent. For a 75 m² home in Amsterdam at €2,142, that means an income of about €6,426 per month.

Tenants who stay put also pay more. CBS reported that rents in existing homes were 4.4% higher in July 2026 than a year earlier: 4.7% in Rotterdam, 4.5% in Utrecht, 4.4% in The Hague and 4.3% in Amsterdam.

Why are rents rising while landlords are selling?

Rents are rising because rental homes are disappearing from the market. The chain works like this:

1. New rent rules. Since 1 July 2024, the Affordable Rent Act (Wet betaalbare huur) caps the rent of mid-range homes through a points system.

2. Higher taxes. The tax on rented property in box 3 has risen, which Pararius names as the second reason renting out pays less.

3. Landlords sell. When a tenant leaves, many landlords sell the home instead of letting it again. In the second quarter of 2026, investors sold 6,400 more homes to owner-occupiers than they bought, Kadaster, the Dutch land registry, reported. Over four quarters, that came to 39,000 rental homes, according to Rabobank.

4. Fewer homes to rent. In the third quarter of 2026, 13,517 free-sector homes were offered for rent, 12.9% fewer than a year earlier.

5. Higher rents. With less supply, new tenants pay more per m².

• The big cities are hit hardest. Pararius found that in Amsterdam, 9.1% of homes sold since July 2024 were former rentals; in Rotterdam, 8.8%; and in The Hague and Eindhoven, 7.6%. Landlords are now selling their most expensive homes too: a third of the former rentals sold had a rent above €2,000.

• The squeeze is tightest in the affordable part of the free sector. Homes rented for €1,228 to €1,500 make up 20% of the supply but receive 35% of all responses, and the number of homes let in that range fell by 23%.

• Behind it all is a general shortage. The Netherlands has about 410,000 fewer homes than households, or 4.8% of the housing stock, NL Times reported, citing research by ABF Research and Capital Value.

Two notes for balance. Pararius is a rental platform and has an interest in this debate, although Kadaster and Rabobank confirm the sales wave. The peak may have passed: Rabobank expects fewer of these sales in the second half of 2026, and the government plans to relax the Affordable Rent Act from 1 January 2027.

What does this mean for buyers?

For buyers, the same trend works the other way: there is more to choose from. At the end of the third quarter of 2026, about 39,000 homes were for sale, 24% more than a year earlier, according to the estate agents' association NVM.

• Prices rose more slowly. The average sale price was €503,000, up 1.8% in a year. Apartment prices rose 1.2%, and in Greater Amsterdam prices rose 0.6%.

• Less overbidding. Nearly two-thirds of homes sold above asking price, down from 71% a year earlier.

• More starter homes. Former rental homes are mostly apartments, which first-time buyers often look for. Kadaster found that first-time buyers paid €407,000 on average in the second quarter of 2026.

The downside is that the market is still tight. Homes sell in 31 days on average, and Rabobank calculated that a household with a median income can borrow about €360,000 while the median home costs about €440,000. In Greater Amsterdam, only 15% of modest apartments were within reach of such a household.

Banks expect prices to keep rising, but slowly. Read their forecasts in the article on housing prices in the Netherlands in 2026, and what to expect when buying a house in Amsterdam.

What are mortgage interest rates doing, and where is the advantage?

Mortgage rates rose in 2026, after the European Central Bank raised its deposit rate from 2.00% to 2.50%. ABN AMRO expects rates to stay high and then gradually decline from the second half of 2027. The background is in the article on mortgage interest rates in 2026.

A higher rate makes buying more expensive than it was, yet a buyer still has three advantages over a tenant:

• Your cost is fixed. With a 10-year or 20-year fixed rate, the payment stays the same. Rent of €1,569 rising 4.4% per year becomes €1,946 after five years.

• Tax relief. With the mortgage interest deduction in the Netherlands, interest is deductible at up to 37.56% in 2026, if the home is your main residence and you repay the loan within 30 years.

• A lower rate with National Mortgage Guarantee (NHG). The NHG rate is about 0.5 percentage points lower on average. The limit is €470,000 in 2026 and rises to €500,000 in 2027. Use the NHG eligibility calculator to check your purchase.

In euros, for a 75 m² rental against a €400,000 apartment:

Table comparing renting at the national average with buying a €400,000 apartment in 2026. Assumptions: 100% annuity mortgage over 30 years with NHG at an example rate of 4.5%, interest deduction at 37.56%, and €350 per month for owner costs. First month; example for illustration, not a quote.

The buyer pays about €290 more per month, but €527 of that is repayment. See today's mortgage interest rates in the Netherlands, or run your own numbers in the mortgage calculator.

Renting or buying: pros and cons

Table listing the main pros and cons of renting and buying a home in the Netherlands in 2026.

The length of your stay decides most. In the example above, buying pays back its one-off costs in a little over two years for a buyer under 35 who is exempt from transfer tax in the Netherlands, and in about four and a half years for a buyer who pays 2%. Selling costs add roughly two years. If you expect to leave within three years, renting is usually the better choice.

Before you decide, check how much you can borrow with a Dutch mortgage. Your contract and income decide that. If you have the 30% ruling, read about the 30% ruling and your Dutch mortgage too.

Keep in mind that every situation is different. The examples in this article are for illustration purposes only. For advice tailored to your personal situation, contact our mortgage advisors at OHAO.

Frequently asked questions from expats

Are rents still rising in the Netherlands in 2026?

Yes. New tenants in the free sector paid 4.4% more per m² in the third quarter of 2026 than a year earlier, and existing rents also rose 4.4% in July 2026. Amsterdam is the most expensive city at €28.56 per m², while Rotterdam and The Hague are rising fastest.

Why are Dutch landlords selling their rental homes?

New rent rules and higher taxes have made renting out less profitable, so many landlords sell when a tenant leaves. Investors sold 39,000 rental homes to owner-occupiers in four quarters. That means fewer homes to rent and more apartments for first-time buyers.

Is it better to rent or buy in the Netherlands in 2026?

It depends mainly on how long you stay. Buying costs more per month in cash but builds up capital, and in the example it earns back its one-off costs after about two to four and a half years. If you plan to leave within three years, renting is usually cheaper.

Not sure whether to rent or buy?

Book a free, no-obligation call with one of our mortgage advisors. We calculate what you can borrow, what a purchase would cost you per month after tax, and how many years it takes for buying to beat your current rent. We work with all the major Dutch banks and over 40 mortgage lenders.