Dutch house prices versus personal income

Regional personal income levels play a role in housing affordability in the Netherlands. Higher personal incomes generally enable individuals to afford higher-priced housing. In regions with higher incomes, people may have more purchasing power and be willing to pay more for housing, leading to higher prices.

However, a clear one-directional causal relation cannot be be established. Higher incomes can drive up house prices, but on the other hand is it also possible that higher house prices attract people with higher incomes from elsewhere. Nevertheless, the correlation between regional house prices and income is clear as the chart below shows

Dutch average house prices versus personal income per municipality

Scatter Chart