Households in the Netherlands had more money to spend on average in the first quarter of this year than last year, according to Statistics Netherlands (CBS). It was stated that the increase is mainly due to higher salaries as a result of collective labor agreements and a rise in social benefits. This while the mortgage debts increased during the previous quarter.
The real disposable income was 2.2 percent higher in the first quarter than a year earlier. This figure is the increase in disposable income, adjusted for price increases.
Income rates for employees and self-employed people were higher than in the first quarter of 2024. The salary increases for employees contributed the most to the rise in household income. The total salaries increased by 6.5 percent. The number of employees’ jobs grew by 1 percent, and the salaries within collective labor agreements were 5.4 percent higher.
The total mortgage debt of all Dutch people rose by 11 billion euros compared to the previous year. The mortgage debts have risen at a faster rate than last year because housing prices were higher in the first quarter than the previous year, and more homes were sold.
Because the economy also grew, mortgage debt as a percentage of gross domestic product (GDP) remained unchanged from the previous quarter at 79.1 percent. That is the lowest level since the third quarter of 2001.