The housing market in the Netherlands is under siege, faced with a shortage of 390,000 homes by 2023. This shortage has led to an overheated housing market. This situation severely affects first-time homebuyers who often lack the capital to compete. Consequently, they encounter challenges in finding suitable housing, which for some, necessitates prolonged residence with their parents or the acceptance of lower-quality living conditions.
While literature acknowledges this issue, it often uses a quantitative approach, missing the qualitative perspective that focuses on first-time homebuyers’ specific problems and needs. Engaging with recent and potential homebuyers allow to better understand the complex factors affecting housing demand.

The central research question is: “What lessons can be learned from the experiences of recent and potential first-time homebuyers to improve the prospects of homeownership in the Dutch housing market?”. The aim is to explore insights from recent and potential first-time homebuyers to improve the prospect of homeownership.

This question was addressed using a mixed-method approach, combining both qualitative and quantitative technique to provide a better understanding of the topic. Initially, a literature review and WoON data analysis, and document analysis were done, establishing a foundation for the research. Subsequently, interviews were conducted to delve into the experiences and perspectives of recent and potential first-time homebuyers. The combined approach of objective data and subjective experiences provided an understanding of the issues surrounding first-time homebuyers.

The literature study revealed that due to the housing shortage, there is a financial gap for many first-time homebuyers and highlighted the variety of financial instruments available to address this gap. Data from the WoON survey illustrated differences in preferences between recent and potential first-time homebuyers. The interviews further investigated the experiences of first-time homebuyers and examined the differences between their initial preferences and the actual choices they made in the housing market. These interviews revealed widespread misconceptions and a lack of knowledge about financial instruments, leading to unequal access to these beneficial products. They also underscored the influence of living situations on the willingness to compromise on preferences. Additionally, the impact of rising prices and overbidding complicates both down payments and monthly payments. These first-time homebuyers also reported experiencing high pressure from selling agents, leading to unwanted decisions and further escalating prices.

The study faced several limitations, including the relatively brief duration of the interviews compared to its scope, which restricted deep exploration of topics, potential response bias from participants, and the data being collected during specific, possibly non-representative time periods.

To address the challenges, short-term actions could include launching educational campaigns to increase awareness of financial instruments for first-time homebuyers and creating an online portal that simplifies the home-buying process. Medium-term measures might focus on expanding and standardizing financial support programs, like starter loans, across municipalities to ensure equal access and reduce regional disparities. Additionally, offering subsidies or vouchers for professional mortgage advisory services could guide homebuyers through the complex housing market. Long-term strategies should include regulating overbidding and speculative buying to stabilize prices and enhance affordability, as well as establishing ethical guidelines for sellers to ensure fair treatment.