Eindhoven is at risk of an economic blow from the ongoing housing shortage. While considerably more was built in 2024 than a year earlier, it was still far too little to achieve the city government’s ambitions. This must and can be improved, experts say. Studio040 publishes a triptych on perhaps the most important issue facing the city.
Those who want to claim social housing in Eindhoven have to spend years on a waiting list. And for first-time buyers, it is almost impossible to buy a house unless they have hit a pot of gold somewhere in their lives. That seems to remain the case for now.
While 2,100 homes were delivered in 2024, the expectation for 2025 is lower with around 1,900 homes. By 2026, the target of 3,000 dwellings set by the current coalition of GroenLinks, PVDA, D66 and CDA will be achieved for the first time.
‘The fact that ambitions are not being met is not unique to Eindhoven,’ says Peter Boelhouwer, professor of public housing at TU Delft. “Nationwide, 21 per cent fewer new-build homes were delivered over 2024 than was agreed as a matter of policy. The housing shortage increased by more than 30,000 homes partly because of this.”
Causes
Boelhouwer explains many reasons for this: “Interest rates on the capital market have risen, making it expensive to borrow money—those rates are now rising again. On the other hand, requirements are high: sustainable and affordable construction is required, while margins are already under pressure. Finding suitable locations is also problematic, with municipalities depending on market players.”
“And administrative capacity is also important: municipal organisations do not get all the applications processed. Twenty to 25 studies have to be done per project. Traffic, environmental impact, flora-fauna, you name it.”
Figures on permit applications in the city confirm those words of Boelhouwer. In the last three years, 64 permit applications were made in Eindhoven for 10 or more housing projects. Of those applications, only three-quarters – 48 permits – were granted. Eindhoven municipality does not know how many of those permits actually led to housing construction.
Then there are the problems surrounding the municipality’s many objection procedures. Two years ago, Studio040 calculated that as many as 23 lawsuits were pending regarding housing construction. Since then, there have only been eight, but the situation still has a solid impact: it prevents the construction of some 1,100 houses, the Eindhovens Dagblad recently wrote. And many of those homes are within the ring road.
Outlook
The region is taking numerous initiatives to give housing construction in the city the much-needed boost. The business community is contributing to affordable housing, and the municipality, with the Eindhoven Bouwt Door initiative, is trying to ensure that the often lengthy procedures are completed as quickly as possible.
But it is far from bearing fruit. However, the prospects are said to be hopeful. From 2027 to 2032, an average of 5,000 homes should be delivered per year, some 2,000 homes per year on top of the ambitions of 3,000 homes, according to the municipality’s housing monitor.
But the professor doubts that positive outlook. “The minister is now saying: in 2027, housing production will go towards 100,000, but I think that given the problems, it will rather be 2029 before we reach that amount nationwide. Then you are already four years down the line, and the number of building permits should start to increase from this year. Whether that will happen, we have yet to see.”
ASML
There is not that much time in Eindhoven, where there may be room for ASML’s expansion. But Christoph Fouquet, top executive of the Veldhoven-based chip machine manufacturer, said on the television programme Buitenhof early this year that the problems in housing construction should be solved in 2 to 3 years.
“The chances of us staying in the Netherlands are very high. But we have to be able to move forward; we cannot soon say to our customers: “Sorry, we can’t deliver machines because we have a nitrogen crisis.”
Due to the nitrogen crisis, there is a need to curb nitrogen emissions from new construction projects, among others. At the moment, the problem is not putting the brakes on housing construction, but future projects may be affected. The nitrogen file also creates additional regulatory pressure. ‘It is an extra puzzle we must put in every project,’ explained councillor Mieke Verhees (Wonen).
Due to the nitrogen crisis, there is a need to curb nitrogen emissions from new construction projects, among others. At the moment, the problem is not putting the brakes on housing construction, but future projects may be affected. The nitrogen file also creates additional regulatory pressure. ‘It is an extra puzzle piece we must put in every project,’ explained councillor Mieke Verhees (Wonen).
In that respect, Boelhouwer thinks things are not looking good for the region. “Those nitrogen problems we refuse to solve, and water quality will also play a role. There is far too much nitrate in there, also because of agriculture and all those piggeries. If we don’t cut that, it won’t end. It just gets stuck.”
Middle-income earners
But a possible departure of ASML is not the only economic noose which threatens via the stalled housing market. For middle-income earners, the housing market will continue to be a crime in the foreseeable future, according to Thom Aussems, a housing expert and former top executive of Trudo. And that too could cause serious problems for the regional economy, Aussems says.
“Higher middle-income earners cannot get housing in the city. They don’t qualify for social housing or stand a chance on the housing market either. So they have to rely on renting in the free market – there, for 60 m2 you pay 1,200 euros – with additional costs – service charges, a parking space, you come to 1,500 euros. Middle-income earners really can’t afford that, but it’s referred to as medium-term rent – but it’s completely unaffordable for someone on a teacher’s salary.”
That view is also recognised at City Hall. ‘I agree that “middle rent” is euphemistic,’ says Alderman for Housing Mieke Verhees. “Paying up to 1,200 euros monthly for a property is heartbreaking. That is also why we are committed to 30 per cent social rent; we do not want to lower that ambition. There must be more opportunities for groups that now too often miss out,” she said.
But that is no solution to the problem Aussems sees emerging. “In London, the population earns by far the most in all of England, but its nickname is City of the Poor. After paying housing costs, 25 per cent of residents are on welfare. This is due to the enormously high property prices, as property ends up with more and more international parties. As a result, the spending space of working people is getting smaller and smaller. That could start happening in Eindhoven, too.”
Local economy
This is disastrous for the local economy, says Aussems. “Real estate entrepreneurs are skimming the extent of disposable income, and local entrepreneurs are suffering. In Salzburg, they calculated that the space spent decreased by 5 per cent due to rising house prices. If the gross domestic product decreases by 1 per cent, we are already talking about a recession. You have to consider how much 5 per cent is for an average household.”
Aussems believes that this, in turn, will affect the presence of the high-tech industry. “The real estate market here will be disruptive to the labour market. Those who like working at ASML are going to say, “I’m not going to live far away for a lot of money, where I have to travel a lot and organise two cars, all to work here.””
“Moreover, small and medium-sized enterprises become the victims the moment people at the bottom of the labour market can no longer find housing here. This is also dangerous for start-up culture. This has been going on in San Francisco for a long time, and teachers, nurses, police, and catering staff live an hour and a half away from the city. People will say, “We’re not going to do that”. Cafes, catering establishments, and schools must close there because of a lack of staff.”
Hostage situation
But the agricultural sector in the region also needs to take a step back, thinks Boelhouwer. “In Brabant, 30 to 40 years ago, they considered keeping pigs on that poor sandy soil. But you now have this high-tech manufacturing industry with high-quality companies like Philips and ASML.”
‘There is huge economic potential, and then you let yourself be held hostage to livestock farming,’ says Boelhouwer. “That whole sector takes up 1.4 per cent of the economy, costs a lot of land and nature, and hardly creates any jobs. But that lobby is so strong, they are in government with a big party. Home seekers don’t have such a strong representation in The Hague.”
Sunday will be the second part of the diptych, on the role of commercial developers in Eindhoven’s building ambitions.
Source: Studio040
Translator: Vanya Dobrikova
