Building alone is not enough
The shortage of student accommodation remains significant in the twelve Dutch university towns surveyed. Although new student rooms are being built, at the same time many rooms are being withdrawn from the private rental market. As a result, the total supply is decreasing and the need for affordable and suitable student accommodation remains high. The composition of the supply is changing, and residential complexes developed specifically for students (Purpose-Built Student Accommodation, PBSA) are becoming increasingly important.
In this publication, we analyse developments in the Dutch student accommodation market. We examine how supply and demand will evolve up to and including 2034, what differences exist between university towns, and what role private landlords, housing associations and investors play in this. Using three scenarios, we demonstrate how the rate at which private landlords sell their properties, the return of investors and the realisation of construction plans could influence the future availability of student accommodation.
Key conclusions
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Supply drives up demand
Many students want to live in student accommodation but are unable to find a suitable or affordable room. Among university students in particular, there is a gap between their desired living situation and their actual living situation. As a result, some students are forced to continue living at home, even though they would prefer to live independently.
Affordability remains an important reason for living at home, but the lack of available accommodation carries greater weight. The need for student accommodation is therefore greater than the current number of students living away from home would suggest. If more suitable rooms become available, more students will actually be able to move into student accommodation.
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Over-farming negates the benefits of new construction
New-build accommodation alone is not enough to reduce the shortage of student rooms. More rooms are disappearing from the private rental market than are being added through new-build projects. As long as the tax treatment under Box 3 makes letting out student rooms less attractive for small private landlords, selling remains a logical choice for many owners.
Only a small proportion of the homes sold remain available to students. Retaining existing accommodation is therefore at least as important as creating new supply.
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New student accommodation requires more investment
PBSA are playing an increasingly important role in the student accommodation market. However, the current rate of growth is insufficient to offset the loss of private rooms. Greater investment by housing associations and investors is therefore needed, particularly in Amsterdam, Rotterdam and Leiden.
There are significant differences between cities. In Groningen, Maastricht and Nijmegen, a falling number of students is actually leading to a better balance between supply and demand. That balance will remain fragile as long as the private housing stock continues to decline.
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A restriction on short stays affects international students
For international students and exchange students, short-stay accommodation is an important part of the housing market. They often stay in the Netherlands for a single semester or academic year and are therefore reliant on furnished rooms that are available for shorter periods.
If this supply decreases, the pressure on the mainstream rental market will increase, thereby exacerbating the pressure there. Furthermore, students who are unable to find accommodation may decide to study in another country. Maastricht and Eindhoven are the most vulnerable to this.
Read the full report here
In the full report you can read more about the development of supply and demand, the three future scenarios and the differences between the twelve university towns up to 2034.
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