Netherlands economic trends show housing growth and technical labor shortages

The Dutch economic landscape shows diverging trends across the housing, labor, and construction sectors. In the housing market, mortgage activity rose by 4.6 percent in the first half of 2026 compared to the previous year, with nearly 217,000 new mortgages issued. While the average transaction price for existing homes reached approximately 500,988 euros in July, the annual price growth rate has slowed to 3.9 percent.

In the labor market, unemployment benefits (WW) have seen increases in specific regions and sectors. In Brabant, office-based and administrative roles have seen a rise in claims, potentially linked to economic cooling and the increasing automation of routine tasks through artificial intelligence. Conversely, the technical sector faces severe labor shortages, particularly in Groningen, driven by the demands of the national climate agreement.

The construction sector reported a 5.2 percent increase in turnover during the second quarter of 2026, though growth has slowed compared to the previous year. While specialized construction and civil engineering saw gains, the industry faces rising material costs and a high number of bankruptcies. Additionally, the new housing market is experiencing imbalances, with rising costs and a shift in supply toward apartments, making it more difficult for families to find suitable homes.