In Flanders, 35 percent fewer leases were signed due to lack of rental housing. Why is there a shortage? You can read it here.
Flanders lacks rental housing
There are fewer and fewer homes available to rent, while demand continues to grow. In other words: The rental market in Flanders is getting tighter. Even people with generous budgets are not finding rental housing so easily. According to recent figures from brokerage federation CIB, there will be a 35 percent drop in the number of rental contracts concluded in the first half of 2024. Below you can read why.
Rising interest rates and delayed new construction
- A major cause of the lack of rental properties is the rise in interest rates. Previously it was attractive for investors to invest in properties for rent, but higher interest costs caused investors to invest less.
- The high price of building materials slows down the realization of new construction projects, resulting in fewer new rental housing units coming on the market.
- The introduction of alternatives such as the state note has pulled investors away from the real estate market, adding further pressure.
Less flow in the rental market
- Renters are staying longer in their current homes as they put off buying their own homes due to increased mortgage rates. This is causing fewer homes to become available.
- Many landlords are selling their older, non-energy-efficient rental properties, which are then bought by people who move into them themselves. This further reduces the supply of rental housing.
Increasing demand for rental housing
- Although fewer leases are being signed, demand for rental housing continues to grow. For example, the number of interested tenants per property at brokerage group Dewaele increased from 26 to 34 people per property between 2023 and 2024. This indicates a widening gap between supply and demand, resulting in tenants increasingly missing out.
Government measures and stable rents
- Rents have increased in recent years, but CIB says the increase is in line with inflation.
- In 2024, the average rent for a house in Flanders will be 912 euros per month, compared with an average of 859 euros per month for apartments. Especially in Flemish Brabant and center cities such as Leuven, we see the highest rents.
- To improve the situation in the rental market, the real estate industry advocates targeted government measures such as the reduction of registration fees when investing in rental housing and a reintroduction of reduced VAT for the demolition and reconstruction of real estate. In this way, they want to reduce the shortage of rental housing.
Additional difficulties for singles
- According to an article from De Standaard, Vincent and Doan testified that they were rejected as prospective tenants for the reason that they wanted to rent a property as a single person. Landlords (and brokers) are more likely to choose to rent a property to a couple because there is then more certainty that the rent will always be paid correctly.
- Rejecting a prospective tenant in this case is legal and does not fall under discrimination. In this article you can read what is allowed under Flemish legislation on discrimination in the rental market.
Sources: CIB, De Standaard, VRT
Would you like to cite this article as a source? Then use:
Stiasteny, L. (2024, Sept. 11). Why is there a lack of rental housing in Flanders? Apartment.be. Consulted on (date XX/XX/202X), from https://www.appartement.be/waarom-is-er-een-gebrek-aan-huurwoningen
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