What is a housing shortage?
A housing shortage is a situation where demand for homes is structurally higher than supply. There are not enough (affordable) homes for the number of households looking for one. The Dutch term is woningnood.
Historical periods
- Around 1900: overcrowded, poor workers’ housing in cities led to housing reform in many countries; in the Netherlands, for example, to the Housing Act (Woningwet) of 1901.
- After the Second World War: war damage and population growth caused severe shortages. Reconstruction brought industrialised building systems and large new estates.
- Today: many urban regions again face a shortage.
Common causes
- Too little new building because of high land and construction costs, long approval procedures and a lack of skilled workers.
- More, smaller households.
- Population growth.
- Low mobility: people in cheap homes move less often.
Building solutions
- Adding storeys to existing buildings.
- Splitting large homes and converting empty offices.
- Modular and volumetric construction for quick delivery.
- Annexes for relatives on the same plot.
Planning and building regulations apply to each option; check with the local authority first.
Related terms
- Flexible housing
- Modular construction
- Granny flat
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