The housing crisis is a major problem that has been at the top of the political agenda for years now, once again with the new minority cabinet. Matthijs Korevaar, Associate Professor at Erasmus School of Economics, was a guest on NPO Radio 1’s Spraakmakers programme on 13 January to discuss the crisis in the housing market. He argues that difficult political decisions are required to solve the shortage.
A major investment
According to Korevaar, the housing shortage can be resolved quit easily: by investing significantly more money in the housing market. However, this proves difficult in practice, as it requires tough political and financial choices. After the Second World War, such a decision was made, with around 10% of the government’s budget being invested in public housing at the time, he explains.
Today, there appears to be far less willingness to make such a large investment. Politicians are reluctant to do so, and there is also little public support for paying higher taxes to finance such an investment. According to Korevaar, this is partly because people in the Netherlands are relatively well off. Only a limited segment of the population is severely affected by the housing shortage, mainly first-time buyers and people who were not born in the Netherlands. For this group, however, the shortage significantly impacts many aspects of their lives.
Quantity over quality
In addition, the Netherlands has high quality standards, which come at a high cost. With the level of investment the government is currently willing to make, it will not be possible to build great new homes for everyone. Housing can also be constructed more cheaply by compromising on quality and applying less strict regulations. Steeper staircases or lower ceilings may need to become the norm.
- Associate professor
- CV
Listen to the interview during NPO Radio 1's Spraakmakers, 13 January 2026, here.
For more information, please contact Ronald de Groot, Media and Public Relations Officer at Erasmus School of Economics, rdegroot@ese.eur.nl, or +31 6 53 641 846.
