Rotterdam plans to build 15,000 homes in the coming years. According to economist Matthijs Korevaar, this will be very challenging. Housing targets are often driven by political ambitions, whilst factors such as construction costs and economic uncertainty ultimately determine whether the homes will actually be built.
One of the key points of debate is the requirement that two-thirds of new-build homes must be affordable. On paper, this sounds appealing, but according to Korevaar, this rule has major implications for the type of homes that are built. 'Developers have to stay within fixed price limits, which means homes are becoming smaller', says the economist. For Rotterdam, this means that many new-build homes will be around 65 square metres or even smaller.
The debate is shifting from affordability to quality of living
The government hopes that homes will become cheaper without having to provide additional subsidies. In practice, however, something else is happening: homes are not becoming cheaper, but smaller. 'As a result, the debate is shifting from affordability to quality of living. People generally want not only an affordable home, but also sufficient living space.'
New-build homes are now smaller than ever, and people are increasingly opting for studio flats and compact flats. 'This is not only due to a lack of space, but also to the way in which regulations and housing benefit are structured', Korevaar explains. According to him, relatively high rents can be charged for this type of small home, ensuring they remain profitable for developers.
As a result, more and more student studios and compact flats are being built, whilst larger family homes are less financially attractive. The question is whether this aligns with what the people of Rotterdam actually want. In fact, the city has many residents on lower incomes, and there is high demand for social housing and affordable rental properties. According to Korevaar, policy should therefore not focus on the proportion of affordable housing on paper, but on increasing the supply of the types of homes for which there is demand.
High-rise buildings are not a cheap solution
Then there is the question: where in Rotterdam should new houses be built? High-rise buildings are often cited as the solution to the city’s lack of space. But according to Korevaar, residential towers are, in fact, extremely expensive to build.
As an example, he cites a recent residential tower block offering so-called "affordable" rental flats of around 43 square metres. The rent? Around €1,500 a month. 'According to the rules, such flats meet the affordability criteria.' But for many Rotterdam residents, particularly those living alone, paying such a rent each month is unrealistic.
House hunters not sufficiently protected
According to Korevaar, the crux of the housing crisis lies not so much in the rents of existing homes, but in the shortage of available homes. Many social housing flats are relatively affordable, but the waiting lists are long. At the same time, stricter regulations make it more difficult for developers to build new homes profitably.
'In recent years, policy has primarily protected existing tenants. Measures that limit or reduce rents benefit people who already have a home, but at the same time reduce the financial scope for new-builds. As a result, house hunters ultimately pay the price.'
More building, less rules
If he were responsible for housing policy in Rotterdam, Korevaar would prioritise availability over strict requirements regarding affordability and quality of housing. 'I would rather build more homes, even if not all of them fall within the desired price range, than get stuck because of rules and regulations that result in fewer and smaller homes being built.'
He also advocates for greater flexibility within the existing housing market. In his view, regulations on house-sharing, room lettings and protection against compulsory purchase should be relaxed whilst the housing shortage remains so acute. 'I believe preventing homelessness and housing shortages is more important than strictly enforcing rules on living space or occupancy rates.' In a city facing a severe housing shortage, the focus must first be on creating sufficient homes. Only then can work begin on further improving affordability and quality of life.
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