According to Luc Severijnen, director of the housing association Thuis, Eindhoven’s housing demand will not ease quickly.
Severijnen discloses this to Eindhovens Dagblad. According to the CEO, there are simply too many problems in the construction sector to be able to build a large number of homes at the moment.
After all, construction costs are skyrocketing, and the financial strength of the housing association is simply not large enough to continue with new construction. Although Severijnen says he does not speak for all housing associations, Thuis’ problems are not unique when compared with other associations.
Land prices
In addition to high construction costs, high land prices would also pose a problem. Eindhoven can accommodate housing associations in this regard, but this is more difficult for surrounding municipalities because those municipalities have their financial challenges. Selling land for a cheaper price is therefore not an option.
Dark clouds
Dark clouds have been gathering above the Eindhoven scale jump for some time. For example, economic conditions have been unfavourable for construction for some time, and these conditions do not appear to improve in the short term. The municipality is looking to the business community in the region as a solution.
The high-tech industry would be happy to invest money in housing construction, but it is unclear whether that is enough to overcome the existing obstacles. The hope is that the fund will be set up in 2024, but it is not yet clear what form such a fund will take, how it will be managed, and where the money will be invested.
Source: Studio040
Translated by : Ayşenur Kuran
