Evaluating Dutch Housing Market Regulation

Bas van der Klaauw
Udo Kock

February 2000

Although the primary goals of post war housing policy in The Netherlands have been accomplished, the Dutch housing market remains highly regulated. This paper develops a static partial equilibrium model to investigate the effects of deregulation on the free market prices and the allocation of houses among households. We focus on three policy measures: individual rent support, social housing projects and the fiscal rules for owner occupied houses. We conclude that abolishing fiscal rules for owner occupant do not affect net yearly expenses on housing. Decreasing individual rent support increases prices on the whole housing market. Finally, less social housing hardly affects market prices, but lowers the inefficiency of the distribution of the stock of houses among households.

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Last updated: October, 25, 2000.