Why is it almost impossible to find a home in some neighborhoods?

You know it: in one neighborhood, apartments are online for weeks, while in the other neighborhood, a home already has dozens of responses within ten minutes of being posted. The Dutch housing market is a patchwork of extremes. The fact that some areas are “more difficult” than others is often due to a perfect storm of factors that boost demand while supply stalls.

It's not just a matter of popularity or a nice view. The dynamics behind a tight rental market are often a complex interplay between the economy, municipal policy and the history of the neighborhood. Once you understand why a specific neighborhood is so difficult, you can adjust your search strategy accordingly.

The law of supply and demand: location, location, location

It sounds like a cliché, but the proximity to employment and amenities is the biggest driver.

Proximity to “Hubs”

Neighborhoods that are within walking distance of major train stations, universities or business districts (such as the Zuidas in Amsterdam or the Beatrix Quarter in The Hague) have a constant stream of new seekers. Because expats, students and commuters are all fishing in the same pond, the pressure here is enormous. Landlords in these neighborhoods can afford to set extremely high income requirements.

The “Gentrification effect”

Some neighborhoods that used to be seen as less attractive are now “hot”. As soon as hip coffee shops, boutique houses and fine restaurants open their doors, this attracts a new target group. Prices are rising and the number of available rental properties is declining because many properties are being sold to investors or individuals who are going to live there themselves.

Municipal Rules and Restrictions

Not only the market, but also the local government plays a major role in how easy it is to rent a home somewhere.

• Self-occupancy obligation: In many popular cities, certain neighborhoods are subject to a self-occupancy obligation. This means that buyers of a home must live there themselves and are not allowed to rent it out. Although this is good for the buying market, it immediately draws a large part of the potential supply from the private rental market.
• Limitation on division: In some historic neighborhoods, municipalities prohibit splitting large mansions into smaller apartments. As a result, only expensive, large homes remain and there are almost no affordable studios available for starters.
• Tourism and short rentals: In cities like Amsterdam, there are strict rules for vacation rentals (such as Airbnb) in certain neighborhoods. Although this is intended to keep homes available to residents, the popularity of the neighborhood for tourists sometimes means that owners prefer to leave their properties vacant for their own use or illegal rental rather than for the long term.

Historical structure of the district

The architecture and history of an area determine how many people can live there.

In old inner cities, the buildings are often monumental. This means that it is not easy to build more and that renovations are subject to strict rules. The inventory of rental properties here is therefore static. In new residential areas on the outskirts of the city, the supply is often much higher, simply because the building density is higher there and tenants were taken into account from the start.

The psychological factor: “Follower behavior”

People are social creatures and we often want to live where 'everyone' wants to live. This creates a snowball effect. If a neighborhood is known as the go-to place for young creatives or young families, demand there will continue to grow, even if prices become unreasonable. This ensures that the favor factor will play an enormous role; landlords would rather choose someone who fits the neighborhood perfectly than someone who can simply pay rent.

How do you deal with this in your search?

If you find yourself falling by the wayside every time in a popular neighborhood, it's time to expand your “search circle”. There are often neighborhoods that are directly adjacent to popular areas where the pressure is slightly lower. You can then be where you want to be within five minutes by bike, but you pay less and are ten times more likely to get a viewing.

Also look at the 'upcoming' neighborhoods that the municipality is currently investing a lot in. You often see an increase in the number of rental properties there before prices explode.