Samenvatting

What causes the delays in the building of sufficient new homes in the Netherlands? And why do housebuilding projects so often struggle with financial feasibility? The land market typically can be described as an imperfect market, while the performance of the land and housebuilding market are closely connected. This connection seems to cause, at least partially, delays in the building of new homes. To be able to build new houses, ownership of land is crucial. However, land does not always come available in time. Landownership also influences competition in the housebuilding market. Based on a review of scientific literature, policy documents and empirical research results, this paper discusses the performance of the land and housebuilding market and its possible impact on housing production. Additionally, the paper reviews recent proposals that have been suggested in the context of the on-going Dutch housing market debate that may improve the functioning of these markets. What might be the effects of these interventions on housebuilding production? The paper concludes with a couple of dilemmas governments face with regard to the functioning of the land and housebuilding market.