The Belgian housing market is increasingly ill-suited to current demographic changes, according to a new study published by ING Belgium.
The ageing population, declining birth rates, and the surge in the number of single-person households will reshape household structures in the coming years, making single-family homes progressively less suitable.
The Planning Bureau forecasts an additional 447,000 households in Belgium by 2040, with 71% consisting of single-person households. This will lead to a growing demand for smaller, accessible, and affordable homes.
Currently, there is an average of 1.06 housing units available per household. To maintain this ratio, the projected increase of 447,000 households over the next 15 years will require at least 475,000 additional homes.
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However, ING notes that this calculation does not account for the nearly 9,000 homes declared uninhabitable each year, last year’s below-average production of new homes, the rising proportion of secondary residences unavailable as primary homes, and increased foreign demand, particularly from the Netherlands.
At the same time, the study highlights that the housing supply may face further pressures due to fewer building permits and increased strain on the construction sector.
The construction industry will need to focus on renovations in the coming years to meet increasingly stringent energy standards.
Measures such as speeding up permit procedures, promoting compact housing, and relaxing rules on the subdivision and repurposing of dwellings could bring the housing supply more in line with these demographic changes, the ING concludes.
