An ex-durante evaluation of the effect of the buy-up protection on square meter prices and rents in Rotterdam

Abstract

This thesis features an analysis towards the effect of the buy-up protection on housing unaffordability in Rotterdam. As housing was becoming more unaffordable during the 2020’s, the municipality of Rotterdam has implemented the buy-up protection in 16 of its 71 neighbourhoods on the first of January 2022. In this research, the effect of the buy-up protection on housing unaffordability was analysed through a Difference-in-Difference analysis of the average square meter price and rents in Rotterdam. From this analysis, it becomes clear that the buy-up protection was able to prevent the average square meter price of housing in buy-up protection neighbourhoods from being € 29,22 (±1%) higher than if the buy-up protection was not implemented. However, this analysis also shows that the buy-up protection was responsible for a € 0,80 (±5%) increase in the average square meter monthly rent in buy-up protection neighbourhoods. Nonetheless, it is worth noting that the results of this research should not be viewed in isolation. The effects of the buy-up protection on square meter prices/rents are a singular factor within a larger framework of possible effects of the buy-up protection.