Rising home prices no longer surprise anyone, yet the overheated housing market continues to reach new milestones that once seemed impossible. At the end of 2021, the average home value was €431,000, compared to €223,000 in mid-2013, at the lowest point of the credit crisis. This means the average price has nearly doubled, mainly due to the unprecedented price increases over the past year.
Total home value reaches record heights
Research agency Calcasa has calculated that the total value of all homes in the Netherlands increased by €1 trillion in just eight and a half years. The year 2013 serves as a benchmark, as home prices began to rise again that year after five long years of credit crisis. At the lowest point, the combined value of all homes was €900 billion. In the years before, this figure was higher, but the crisis between 2008 and 2013 caused prices to fall sharply and homes were sold only with great financial difficulty.
What caused the total home value to increase so rapidly?
After 2013, the housing market saw a period of catching up. This effect was amplified by a steady decline in mortgage interest rates, making it increasingly easier to secure a loan for buying a home. As a result, demand surged and home prices rose to unprecedented levels. In recent years, a growing shortage of available homes for sale has further intensified this effect. Due to the tightness of the market, buyers consistently offer well above the asking price, causing home values to rise even more and further increasing the total value of all homes in the Netherlands.
Since 2013, the housing stock has also grown by approximately 8.5 percent, which naturally contributes to the overall increase in total home value. Combined with the price increase over the past eight years—93 percent since 2013—the combined value of all homes now stands at €1.9 trillion. In 2021 alone, this value rose by €235 billion.
Owner-occupied homes in Amsterdam drive values even higher
The province of Noord-Holland leads the ranking for the largest increase in home value since 2013. Unsurprisingly, Amsterdam has been the main driver of this growth. Over the past eight and a half years, homes in Amsterdam have increased in value by €45 billion. The number of homes in the capital is greater than in other cities, so the impact on the total increase in value is larger as well. Additionally, home prices in the Amsterdam region have risen more sharply than in many other provinces and regions, further amplifying the overall effect.
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