The number of compact homes in the Netherlands, defined as those measuring 50 square meters or less, is steadily rising. A significant factor in this trend is the growth of "flexible homes," a

temporary housing solution aimed at addressing the housing shortage, according to a recent report by the Netherlands Environmental Assessment Agency (PBL). Many of these flexible homes measure just 20 square meters or even smaller.

Yet, the PBL emphasizes that "most Dutch people prefer not to live in such small spaces." Currently, tiny homes make up 5.9% of the overall housing stock, an increase from 4.5% in 2012.

The PBL report highlights a disconnect between the rising availability of very small homes and the preferences of the Dutch population. Only a limited group of home seekers actively seek smaller living spaces, and satisfaction among those living in such compact homes tends to be relatively low. Many residents move into larger spaces within a few years. While the average home size in the Netherlands is around 120 square meters, approximately 482,000 small homes exist, mostly occupied by people with limited financial resources.

More than 80% of residents in flexible housing are under 30 years old. These homes are often designed to be portable or are located in temporarily repurposed buildings, making them faster to construct and install than permanent structures. Flexible housing primarily targets people with urgent housing needs, such as students, refugees, those facing financial difficulties, and individuals experiencing life transitions, like divorce.