New-build homes keep shrinking: from 114 to less than 100 m²

If you are considering buying a new-build home, it is worth knowing that new-build homes keep getting smaller. Ten years ago a new house averaged 114 square metres; now it is less than 100 square metres. What are the causes and what does this mean for you as a buyer?

A sharp fall in floor area

Research by the Land Registry and newspaper De Volkskrant shows that the floor area of new-build homes has fallen considerably. Between 2015 and 2019 floor area still rose slightly each year, but after that the space shrank quickly. Fewer and fewer homes of more than 100 square metres are being added, while that used to be a perfectly average size.
This applies both to homes for sale and to new social housing, with the shrinkage fastest in the latter category.

Every type of home is getting smaller

You might think the smaller average is only because more flats are being built. But the Land Registry figures show that every type of new-build home is smaller than before:

Detached houses: ten years ago 224 m² on average, now 40 m² less, a fall of 17 percent
Semi-detached houses: these have shrunk too
Terraced houses: end-of-terrace homes in particular are less roomy than ten years ago
Flats: here the shrinkage set in early as well

With detached houses and flats the shrinkage began first.

Why are new-build homes getting smaller?

There are several causes for this trend:
1. Rising building costs
Rising prices for building materials and staff shortages are probably the main cause. To meet the demand for affordable homes, developers economise on the number of square metres.
2. Changed housing policy
According to housing market researcher Léon Groenemeijer of ABF Research, cities are focusing on building more compactly. "We build within the existing city and urban area, so smaller," the researcher says. Large urban expansions with suburban districts appear to be a thing of the past.
3. More flats
The increase in flat building also contributes to the smaller average, although that is only part of the explanation.

The Netherlands still spacious by European standards

Despite the shrinkage of new build, people in the Netherlands still live relatively spaciously by European standards. On average homes (new build and existing together) still measure 130 square metres, putting the country among the roomiest in the EU.

Alongside the smaller floor area there is another worrying development: provinces are warning that new build may grind to a halt because of the nitrogen impasse and the overloaded electricity grid. The association of provinces states that the construction of 500,000 new homes is at risk as a result.
The housing deals, agreements with provinces and municipalities to add a million homes, are hard to carry out. The provinces want more effort and tens of billions of euros extra from central government to prevent new build from stalling.

The top building problems

The association of provinces indicates where the biggest problems lie:

Nitrogen: around half of all new-build projects are affected
Grid congestion: the problems are greatest in Utrecht, Gelderland and Flevoland
Unprofitable margins: for more than 50 percent of homes the costs exceed the returns, by 10,000 to 35,000 euro per home
And other bottlenecks

The combination of these bottlenecks means at least 50 percent of the remaining housebuilding task in the Netherlands, some half a million homes, faces serious delay or may not be realised at all.

What does this mean for you as a buyer?

Considering new build?
Be aware that new-build homes are smaller on average than ten years ago. That is not necessarily negative: smaller homes are often more affordable and more efficient to heat. But it is important to think carefully about how much space you really need, now and in future.
Looking for more space?
Existing homes can be interesting if you want more floor area. Dutch homes from previous decades are on average roomier than current new build. At M&D Real Estate we are happy to help you find a home that matches your space needs.
Worried about the housing shortage?
The delays in new-build projects mean the shortage will persist for the time being. That underlines the importance of searching actively and acting quickly when a suitable home comes up.

Personal advice at M&D Real Estate

At M&D Real Estate we understand the challenges of the housing market. Whether you are looking for new build or an existing home, a compact flat or a spacious family house, we are glad to help you make the right choice.
Considering an existing home you want to renovate to create more space, or do you want to fit out a new-build home properly? Our partner Labelbewust can help with smart renovations and energy solutions that increase your comfort.
Get in touch for a conversation without obligation about your housing wishes and the options in the current market. We are happy to think along with you.