The Dutch middle rental housing sector plays a crucial role in bridging the gap between social housing and the private rental market. However, this sector is currently facing severe challenges, including a significant housing shortage, affordability constraints, and regulatory uncertainties. Middle-income households, who earn too much to qualify for social housing but struggle to afford private rental or homeownership, increasingly find it difficult to secure suitable housing. The stagnation in this sector is exacerbated by rising construction costs, reduced investor confidence, and government policies that, while aiming to maintain affordability, often discourage development.

This research seeks to answer the main research question: How can the middle rental housing market in the Netherlands be optimized to better serve its intended target group and relieve market stress?

Using a mixed-methods approach, the study integrates quantitative analysis of WoON 2021 data to assess market trends and affordability levels with qualitative insights from interviews with policymakers, real estate developers, housing corporations, and middle-income households. The findings reveal a mismatch between supply and demand, with older and larger households facing the greatest difficulties in securing suitable housing. Additionally, investment in new middle rental housing has declined sharply due to restrictive rent regulations and economic uncertainty.

To address these challenges, the study recommends a diversified approach that includes increasing the supply of larger and more adaptable middle rental homes, improving regulatory clarity to encourage investment, and implementing targeted financial incentives for developers. By adopting a coordinated strategy that balances affordability with investment incentives, the Dutch middle rental sector can become more sustainable, accessible, and responsive to the evolving needs of middle-income households.