, i would like to give you a few details on the logistics of the seminar. to begin with, each session has a different moderator. they have an important role today : to make sure presentations are kept brief and to - the - point, and to stimulate debate. second, we are fortunate to have an impressive turnout of high - level policy makers, leading academics and financial sector representatives from various countries. given the seating constraints, a number have to sit in the second row. at the same time, let me stress that everyone in the second row is just as welcome to participate in the discussion as those seated at the front. finally, please note that we ’ ve invited a couple of our trusted friends from the dutch press to attend this seminar. but, obviously, the chatham house rule applies, starting right after this introduction and the key note speech. so, nothing stands in the way of an open, thought - provoking and stimulating discussion! i sincerely hope that today ’ s seminar will bring our collective understanding of urban housing markets a bit further, and help us tackle the challenges ahead. and let me now turn to our next speaker. we had invited our deputy prime minister, and minister of the interior and kingdom relations, kajsa ollongren. she is responsible for housing policy in the netherlands. unfortunately, and perhaps ironically, she has been called to the hague for a parliamentary debate on the affordability of dutch housing. in her stead, erik - jan van kempen will deliver the opening remarks. erikjan is program director general at the ministry, responsible for implementing the environmental and planning act. moreover, as an inhabitant of amsterdam, he is very familiar with the situation in the capital. he will now enlighten us with his view on these matters. erik - jan, the floor is yours.

countries house price growth is coupled with strong mortgage growth. indeed, the strong price increases are making urban housing affordability a pressing issue everywhere in the world. for central bankers, responsible for financial stability, affordability may not always be their most important concern. however, extreme examples such as the san francisco bay area, silicon valley, where the average house costs €1. 5 million, show this can become a problem for broader economic wellbeing. as these areas are booming, many workers cannot afford to live there anymore. recently, we see books, research papers and newspaper articles documenting these consequences of decreasing affordability, social as well as economic. urban demographics are changing as a result. young, well - educated people are drawn to cities, often chasing a limited supply of housing. due to the housing shortage, middle - income households are at a disadvantage : too rich to qualify for social housing, not rich enough to buy a house. they need to rely on the rental market. however, if this market does not function well, as is the case in many cities, middle income families are forced to move away. moreover, the rise of major cities also leads to increasing divergence between these cities and more peripheral regions. at the same time, spillover effects cause prices to rise in areas directly bordering major cities. this ultimately affects the structure of economic development, which increasingly shifts to urban areas and away from the periphery. housing supply the lack of suitable housing plays a major role here. supply shortages in cities, and to a lesser extent in other parts of the country, are a main driver of current price rises. and as we know from past experience, strong house price rises can lead to overshooting. which is often followed by a correction. this price volatility does not remain confined to the housing market. in countries like the netherlands, with a high rate of home ownership and dependence on mortgage lending, house price volatility feeds into the real economy. the link between house prices and private consumption is very strong here. this symbiotic relationship causes booms to grow larger and busts to be deeper. a more balanced and suitable supply of housing is thus needed. this does not only mean owner - occupied housing, but also private rental, especially for middle - income households. as a dnb study pinpointed last year, they are put in a tight spot on the housing market. in our view, a larger mid - market private rental segment is the key to