Economy
- 5.5
  
  Economic growth
- 9.1
  
  Unemployment
- 2.5
  
  Inflation
Housing
- 8.8
  
  Market liquidity
- 7.4
  
  Rental prices
- 7.1
  
  Transaction prices
Consumers
- 3.5
  
  Consumer confidence
- 1.6
  
  Affordability
- 7.0
  
  Satisfaction
Sustainability
- 5.1
  
  CO2 emissions
- 4.4
  
  Renewable electricity
- 8.8
  
  GRESB
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Housing Market Indicator

overall score, actual per Q4 2024
- Consumers
  4.0
- Economy
  5.7
- Sustainability
  6.1
- Housing
  7.8

Housing Market Indicator

Housing Market Indicator shows mixed signals - In the final quarter of 2024, the Housing Market Indicator (HMI) dropped to 5.9 after several consecutive increases.

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5.9

Housing Market Indicator

overall score, actual per Q4 2024

About the Housing Market Indicator

The Dutch housing market is one of small proportions but with many faces. Addressing and interpreting the differences in the right way is key for investors. As an objective indicator of the current market situation we developed the Housing Market Indicator (HMI). This tool provides a quick but thorough overview of the Dutch housing market from a residential investors perspective. The HMI will be updated twice a year.

The HMI is made up of 12 key determinants. Not only economic and housing market developments are included, developments in the field of sustainability and the situation of Dutch (residential) consumers are also important factors. The rental housing market and the satisfaction of tenants in the important middle segment of the housing market are reflected in the HMI. This unique composition of factors constitutes an indicator which offers a solid reflection of the elements that are important for Vesteda as a residential investor and for other investors.

The 12 drivers of the HMI are divided into 4 different quadrants with 3 drivers per quadrant. The 12 drivers are scores on a scale from 1 to 10, based on the best available data. We believe transparency is very important, that is why we only used public-data. It should be noted, however, that with some drivers the data lags behind the market situation as no recent data is available. To arrive at a score, the data has been placed in historical perspective as far as possible. On some drivers, there is little historical data available which means only data from recent years is used. The data from most drivers was then scored on a 10-point scale where the historical lower and upper limits were determined as the maximum range. Only on the drivers GRESB and customer satisfaction are the actual scores used. The average of the scores on the 12 drivers was then used to calculate a final score. As the indicator only contains historical data, predictions are not included in the HMI.

As the manager of the largest residential fund in the Netherlands, Vesteda believes it is important to increase the knowledge on the Dutch residential investment market and to promote transparency. With the Housing Market Indicator, Vesteda therefore offers more insight into current market developments on the Dutch housing market.

Housing Market Indicator

Housing Market Indicator shows mixed signals - In the final quarter of 2024, the Housing Market Indicator (HMI) dropped to 5.9 after several consecutive increases. In line with this decline, the market shows a mixed picture, with both growth and new challenges in various areas.

Housing sector growth versus affordability issues - The housing sector maintained its positive trend, reflecting stable market activity. However, consumer affordability deteriorated as increasing house prices of both rental homes and owner-occupied homes limited the affordable housing options for certain income groups. This decline significantly impacted the HMI score and highlights an important concern for the coming quarters.

Mixed economic signals - Economic growth improved during the quarter, suggesting some recovery of the economy. However, high inflation continued to pose a problem by eroding purchasing power, limiting the potential positive effects of the improved economy.

Sustainability concerns persist - A sharp decline in the sustainability quadrant was observed due to increased household carbon emissions. While seasonal factors may partly explain this rise, the result raises concerns about the housing sector’s environmental impact.

In conclusion, while the housing sector shows resilience, challenges related to affordability, inflation, and sustainability require some attention in 2025 to maintain a balanced and stable market.

Economy

Housing

Consumers

Sustainability

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