dutchโ Housing Corporations Face Construction Crisis as Costs โคSoar
AMSTERDAM – Dutch housing โassociations are warning that ambitious targets for new social housing โconstruction are in jeopardy as rising interest โrates, inflation, and construction costs erode their financial capacity. According to Aedes, the national association of housing corporations, the sector has surpassedโฃ โฌ100 billion in debt, and some organizations may struggle to secure financing for new projects as โฃearly as โฃnext year.
Last year, housing associations committedโ to building 30,000 โฃnew social rental homes โannually starting in 2027, an agreement โคreachedโ withโข the cabinet and municipalities. However, aedes reports that corporations are now facing lossesโข of approximately โฌ48 per tenant due to escalating financial pressures, threatening the viability of this pledge. The organizationโข is renewing its call for theโ abolition of profit tax levied on housing corporations, arguing that these fundsโข should beโข reinvestedโค in maintaining existing homes and acceleratingโ new construction.
“We have saidโ that we can โขmaintain this situationโ untill 2030,” stated an Aedes spokesperson. “But the sector has already passedโ the 100 billion euroโ mark.โข In โthe meantime,interest rates,inflation and construction costs are rising. Some corporations can โstill make progressโ for a few years.But others will have problems borrowing money to โfinance construction next year.”
Aedes contends that the current profitโข tax structure unfairly burdens social โhousing providers, as these organizations do not operate for profit. theโ spokesperson emphasized that eliminating thisโ tax would free up crucial resources for both home maintenance andโค the โฃrealization of new construction ambitions, providing a vital buffer against the mounting financial challenges. the debate over the tax policy is expected to โintensify as housing โcorporations assess their financial โคoutlooks and โthe feasibility โฃof meeting theโ 2027 construction targets.
