Intervention in the Netherlands

Abstract

In the Netherlands, the production of housing and the allocation of vacant dwellings both are largely controlled by public agencies. The system of government control was developed to deal with the acute housing shortage, brought about by World War II, within the framework of the economic recovery program. Unfortunately, the postwar proliferation of policies and the huge public expenditures have not solved the persistent housing crisis. In fact, recent policy changes to limit public spending have only aggravated the situation. A number of developments in the housing market, such as the widespread conversion of rental units to owner-occupied dwellings and the mushrooming squatter movement, are indicative of how individuals react within the policy framework on both the supply and demand sides, providing households with access to dwellings while circumventing the official allocation procedures. Though these developments offer a solution to the housing problem at the individual level, they contribute to a loss of control over the housing system.