Distribution of well-being: housing

Housing is about people’s living situation. A home provides shelter, safety, privacy and personal space. A good and affordable home in a pleasant neighbourhood with access to various services contributes to quality of life. Relevant aspects include social cohesion in the neighbourhood and local amenities, but also the characteristics of the home itself and the affordability of housing.

The differences between population groups are measured in terms of median housing costs as a proportion of income (known as the housing ratio). This expresses the percentage of income that is spent on housing; half of households reported spending up to this percentage of their income on living expenditures. Total living costs comprise total housing costs, such as rental or mortgage costs plus additional accommodation-related costs such as property taxes, home insurance, and charges for waste water disposal, gas, water and electricity. The lower the share of income spent on housing, the more favourable it is.

  • The share of income spent on housing, the housing ratio, is relatively high for the age groups below 35 and over 75, reference persons with primary education or a prevocational secondary (VMBO) qualification and households in which the reference person themselves or their parents were born in a country outside Europe.
  • The housing ratio is relatively low for households with a reference person aged between 45 and 64, who has a higher vocational/university or equivalent qualification, or who was born in the Netherlands and whose parents were also both born in the Netherlands.
  • The housing ratio was a good deal lower in 2023 than in 2019. This development is mainly visible in the lower-income group.

Housing ratio

Situation in 2023

In January 2023, half of households had a housing ratio of up to 20.8 percent, while the other half had a housing ratio of 20.8 percent or more.

  • The level of the housing ratio is correlated with the age of the reference person. If the reference person is 35 or younger, the housing ratio is relatively high. The same is true for those aged 75 or over. By contrast, for the age groups between 45 and 64, the housing ratio is relatively low.
  • Educational attainment is also correlated with the level of the housing ratio. Households whose reference person has primary education or a VMBO qualification have a relatively high housing ratio. Those with higher vocational or university education spend a relatively low share of their income on housing.
  • The median housing ratio is relatively high for households with a reference person born in a country outside Europe or whose parents were born in a country outside Europe.

The characteristics of age, educational attainment and origin/country of birth are correlated. If we correct for this correlation, it remains true that households with a reference person aged between 55 and 64 are more likely to have a lower housing ratio than the youngest and very oldest groups. It also remains the case that low housing ratios are more common among households with a reference person who has had higher vocational or university education than among households with a reference person with primary education or a VMBO qualification. The situation is also unchanged for reference persons born in the Netherlands whose parents were also born in the Netherlands: they still spend a relatively low proportion of their income on living expenditures.

Changes between 2019 and 2023

The median housing ratio was lower in 2023 than in 2019. This trend is primarily visible in households with reference persons aged between 35 and 44 and in the lower-income groups. The latter are primarily households with a reference person with a VMBO or equivalent qualification and households with a reference person born outside the Netherlands. This fall in the housing ratio among groups of households at the bottom end of the income distribution is partly related to cumulative measures to compensate for high inflation. For instance, in 2023 the minimum wage was raised and there were corresponding increases in welfare benefits and the state pension. In addition, there were extra increases in child budget and care allowance, and the energy allowance was extended for the lowest incomes.