Insufficient attention to the construction of housing for seniors

According to data from Capital Value, in recent years an average of only 600 senior housing units have been added annually to the rental sector. This stands in sharp contrast to the ambition level of 31,000 rental and owner-occupied homes per year. Without clear direction and concrete measures from The Hague, mobility in the housing market will stagnate, with major social consequences. The absence of this topic from the political agenda is a missed opportunity, especially at a time when institutional investors have significant capital available for investment.

Triple ageing presents an unprecedented challenge
The Netherlands faces an unprecedented challenge in housing its ageing population. Due to triple ageing — a growing number of seniors, increasing life expectancy and more single-person households — the demand for suitable housing is rising sharply. Yet the realisation of senior housing lags far behind the national ambition to create 290,000 homes for seniors by 2030 (31,000 per year). This target includes the construction of 170,000 life-cycle-proof homes and 80,000 clustered senior housing units.

In the past three years, Capital Value has recorded only around 1,800 new-build transactions for independent senior housing units. As a result, many older people are forced to remain in family homes that no longer meet their needs, leading to limited mobility in the housing market and increasing pressure across all segments. According to the Aanjaagteam Wonen, Welzijn en Zorg voor Ouderen, the construction of a single senior home can trigger up to seven subsequent moves within the housing chain.

Policy and reality diverge
Despite various incentive schemes and administrative agreements, the development of senior housing is progressing far too slowly. Lengthy permit procedures, high construction costs, nitrogen regulations and inconsistent policy continue to hinder implementation. The recent requirement for municipalities to draw up a housing and care strategy (woonzorgvisie) is an important step towards aligning senior housing development with local demand. However, in the coming years it will need to become clear to what extent these strategies will actually lead to more and better housing solutions for seniors. Dirk Adriaanse, Associate Director at Capital Value: “Precisely now that investment appetite among market participants has increased significantly, it is a missed opportunity that there is not enough supply. Institutional investors are setting aside hundreds of millions of euros for long-term investments in senior housing, but there is simply far too little available product for impact investments in this segment.”

Political parties missing opportunities
Capital Value’s analysis shows that housing for seniors is mentioned only marginally in election programmes, and often without any concrete incentive measures. Only a few parties propose firm actions, such as mandatory courtyard housing or policies to encourage residential mobility. For most parties, ambitions remain vague, leaving this socially urgent issue with low political priority. Capital Value therefore calls on national political parties to come forward with more concrete proposals for the construction of senior housing, enabling the housing shortage to be addressed effectively. To achieve the ambition of 290,000 homes by 2030, clear targets and a stable investment climate are essential.

Dirk Adriaanse: “It is incomprehensible that this topic is barely reflected in the election programmes, especially at a time when so many homes for seniors need to be built — and sufficient capital is available to make this happen. Political parties must develop concrete plans to stimulate the construction of senior housing. For example, by making it mandatory to include a fixed percentage of senior housing in land allocations. In addition, the national government could provide financial support to offset the higher costs of senior housing, for instance through the introduction of a Senior Housing Construction Incentive Scheme (SBSW). Lowering the transfer tax for residential care complexes is also essential to get new developments off the ground.”