The Netherlands has one of the highest proportions of government housing in Europe, with approximately 1 in 3 Dutch homes subsidized by the government. Although the Netherlands faces the challenge of being a densely populated country, they have successfully expanded available housing by 7.6% in the last few decades. While there is significant social stigma around public housing in the United States that poses obstacles to solving the housing crisis, there is less social stigma regarding government housing in the Netherlands because public housing is much more common. In the Netherlands, public housing is built to the same standards as private housing with the intention of creating cohesive, integrated neighborhoods.
Public Housing in the Netherlands
Housing that is subsidized by the government is known as social housing. Approximately 30% of the Netherlands’ national housing stock is social housing. This percentage is higher in big cities like Amsterdam, where nearly 50% of housing is social housing. Compared to the United States, where only approximately 3% of the population receive government housing assistance, the Netherlands has a much greater proportion of its citizens living in government subsidized housing.
Rent in social housing is determined by a points system, where points are awarded based on the size and amenities of the property. The number of points determines the rent of the property, with a higher number of points translating to higher rent. Local housing associations are responsible for setting a maximum rent for social housing each year. In addition, 80% of social housing must be rented to households that fall below a certain income threshold. 20% of available social housing must be available for households with two tiers of higher income thresholds. These income thresholds are adjusted yearly.
Housing associations are responsible for maintaining homes and neighborhood parks, facilities, streets, and parking. They also organize activities and events for the neighborhood and prevent crime by removing graffiti, encouraging a close-knit community among residents, and monitoring houses and facilities. Tenants in social housing can bring complaints about rent, service charges, maintenance, and nuisance to the housing association complaints committee or the Rent Tribunal, a neutral agency which settles disputes between tenants and landlords. To apply for social housing, individuals must be within the income thresholds for social housing and register with the local housing association. Households apply for properties they are interested in, but there are often long waitlists. Factors including income, family size, time spent on the waitlist, and urgency are all considered when allocating housing.
Private Housing
The private housing market in the Netherlands is called free-sector housing. Unlike social housing, there is no cap on rent, no cap on increases in rent, and no point system for determining home value. Owner-occupied homes in the free-sector consist of approximately 60% of the national housing stock, privately owned rental homes make up 8% of housing stock, and the remaining 32% are government owned rental homes. In contrast, 65% of homes in the US are owner-occupied.
Public-Private Partnerships
The Netherlands utilizes a private-public partnership (PPP) to expand housing affordability. PPPs require both the government and private companies to invest financial resources and expertise in a development project. Co-investment on projects is more cost-effective and lowers risk for both investors. Additionally, PPPs allow the government to complete projects more quickly and efficiently than projects funded by the government alone.
VINEX
Between 1995 and 2005, the VINEX housing program increased housing stock in the Netherlands by 7.6% by producing 450,000 homes. The project was a combined effort of national, regional, and municipal governments to expand housing around populous cities in locations that were accessible by public transportation. Land acquisition and infrastructure costs were subsidized by the Dutch Central government and new neighborhoods were built with sustainability in mind. Many neighborhoods feature open canals and waterways to collect run-off, incorporate outdoor spaces and parks, and are designed to promote walking and biking.
Opzoomeren
Opzoomeren involves initiatives such as street festivals, Dutch language classes for immigrants, and the creation of community rules which reduce conflict. The Opzoomeren policy began in Rotterdam, a city heavily populated by migrants, as a city-wide policy. Initially organized by citizens to improve integration and connection in their communities, it has since spread throughout the Netherlands as a national policy. Actions are initiated by the community and may be funded or by the municipality if the project is successful. The Opzoomeren policy has successfully bridged cultural gaps in neighborhoods that are ethnically, socio-economically, and generationally diverse.
Takeaways
In comparison to the United States, the Netherlands provides government-assisted housing for a greater proportion of its citizens and has less social stigma regarding living in public housing. Although the Netherlands still faces housing affordability and supply concerns, its policies provide examples for how housing supply, specifically public housing, could be increased in the United States. Additionally, the Netherlands serves as an example of how public housing can be effectively integrated among higher income households to create more diverse, accepting neighborhoods.