Number of listings of rental properties in Amsterdam suddenly decreases

30-9-2021 — 

Before Covid-19 broke out, the total number of listings in Amsterdam averaged about 1850 rental homes. Then came Covid-19: the expats stayed away, causing much of the demand to fall away. Tourists also stayed away, causing many AirBnB properties to enter ‘the regular rental market’ as well. As a result, the supply of rental properties in Amsterdam rose to an average of about 2,650 houses. Almost half more than normal. This also had an impact on rental prices, as there was little demand and a lot of supply. Rents fell by about 10-15%.
Currently (late September), however, something strange is happening: the supply of rental properties in Amsterdam has suddenly dropped very sharply. Currently there are only a little less than 1000 properties left for rent on www.Pararius.com (the only rental platform with an unique offer, where a property may only be advertised by 1 real estate agent). That's about 45% less than normal and even about 65% less than at the height of the Covid-19 crisis.

Why has the number of listings dropped?
It is not entirely clear to us what the reason for the decrease is. It may be a seasonal influence. In August and September traditionally many (foreign) students start looking for housing and after the summer vacations many expats always arrive. Now that more tourists come to Amsterdam again, AirBnB properties are probably also again mainly used for renting out to tourists. We namely do not see this decrease in surrounding municipalities. Or perhaps investors are put off by all the extra measures, such as the 8% transfer tax or the threatening new legislation around the point scoring. It may also be that investors, now that the owner-occupier market is at an all-time-high, have sold many homes. Or tenants who want to buy but cannot, are forced to stay longer in their rented home. Whatever the reason, the number of listings of rental homes in Amsterdam is uniquely low right now.

How does this low supply affect rents?
At the moment we are not yet seeing a major effect of the low supply on the rental prices. What we do see is that homes are being rented out again more quickly and candidates are deciding much more quickly. But it is simply an economic law that prices rise when there is scarcity. So if the supply remains low, rents are guaranteed to rise again. Because the demand for rental housing remains as high as ever.

Picture from Steve Wilson via Pixabay