Annual house price to rent ratio in the Netherlands 1970-2019
This statistic shows the annual house price to rent ratio in the Netherlands from 1970 to 2019. This ratio, based on the nominal purchase price of a house divided by the annual rent of a similar place, is normally used to show the undervaluation or overvaluation of real estate prices and aims to give an indication whether or not its cheaper to buy or to rent residential property. In 2019, the ratio reached an index value of 122.2. This was the highest value reached since 2011. The source mentions that values over 100 indicate that the present price-rent ratio, or price-income ratio, is above its long-run norms. This provides an indication of possible housing market pressures.
