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Are Dutch Social Housing Institutions Ready for Rising Flood Risks?

Imagine waking up one morning to find your neighborhood submerged in water. Streets are rivers, homes are islands, and the damage is irreversible. This is not just a dystopian scenario; it is an increasing reality for many. Climate change has intensified extreme weather events, and for the Netherlands—a country with one-third of its land below sea level—flood risk is a serious concern. But how prepared are Dutch social housing institutions for these growing threats?

The Rising Tide of Risk

Scientific research, including reports from the IPCC and the latest 2023 KNMI climate scenarios, has confirmed that global warming is accelerating sea-level rise and increasing the frequency of extreme weather events. The devastating flood in the summer of 2021, which caused over €430 million in damages in the Netherlands alone, serves as a stark warning.

Floods do not just damage infrastructure; they erode financial stability. They can lower property values, increase mortgage defaults, and even trigger mass climate migration. For Dutch social housing institutions—responsible for nearly one-third of the country's residential real estate—understanding and mitigating flood risk should be a top priority. But are they taking the necessary steps?

How Prepared Are Housing Institutions?

A recent study conducted by Yves Baljet as part of his MSc in Sustainable Finance at Maastricht University aimed to answer this question. Using flood maps from Deltares and survey data from 252 housing professionals (including directors, portfolio managers, and asset managers), the research assessed both the objective flood risk and the subjective perception of risk among Dutch housing institutions.

The findings were revealing. Key factors influencing flood risk awareness included:

  • Experience with past flooding – 25% of respondents had faced floods in the past five years, making them more conscious of the dangers.
  • Use of risk assessment tools – Institutions using the Climate Impact Atlas were significantly more aware and prepared.
  • Housing portfolio composition – Institutions with a higher share of single-family homes tended to be better prepared for flood risks.
  • Size of the housing institution – Larger institutions tend to be better prepared for flood risks.
  • Incorporation of climate risks into strategy – Only 30% of housing institutions have formally included climate risks in their portfolio strategy. This gap raises concerns about their long-term resilience.

The Role of Risk Assessment Tools

One of the most underutilized tools in flood risk management is the Climate Impact Atlas, a publicly available tool that helps map climate risk for the Netherlands. Institutions that use this tool reported higher awareness and better preparedness. However, only 30% of them actually make use of it. Given its effectiveness, broader adoption could play a critical role in safeguarding social housing assets against future floods.

From Awareness to Action

While awareness of flood risks is growing, action is still lagging. The study highlights an urgent need for housing institutions to integrate climate risk into their long-term strategies. Proactive steps include:

  • Wider adoption of risk assessment tools – Increasing the use of the Climate Impact Atlas and other publicly available tools.
  • Incorporating flood risks into real estate planning – Ensuring that all new developments consider flood resilience.
  • Collaboration with policymakers – Working with government bodies to improve flood protection measures.

A Call to Action for Social Housing Institutions

Flood risk is no longer a distant threat; it is a reality that requires immediate attention. Dutch social housing institutions have a responsibility not only to their tenants but also to the sustainability of their assets. By integrating advanced risk assessment tools and proactive planning, they can fortify their resilience against the rising tide of climate change.

Now is the time to act—before the next flood arrives.

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