How do travel costs affect total housing costs?

When looking for a new home in 2026, the focus is often on the monthly mortgage costs or the rent. However, one factor that can drastically influence the actual affordability of a home, but often only becomes clear afterwards, is travel costs. In the current economic climate, where both fuel prices and public transport rates have risen significantly, the distance between work and home has become a direct variable in the monthly budget.

The traditional trade-off “living further away for a lower price” is no longer as easy as it used to be in 2026. Indeed, the savings on housing costs can be completely offset by the rising costs of mobility. In this article, we analyse how travel costs affect your overall financial picture in 2026.

The shift in the mileage allowance

While the tax rules for travel allowances offer some relief in 2026, they rarely cover the full load. Since 1 January 2026, the untaxed mileage allowance has been set at €0.23 per kilometer. Although this is a slight increase compared to a few years ago, the actual costs of owning and operating a car (including insurance, maintenance and the sharp increase in vehicle taxes for electric cars) are often much higher.

For an employee who lives 30 kilometers from work and travels four days a week, the annual distance is approximately 12,000 kilometers. At an actual kilometer price of €0.45 (a real average in 2026 for a middle class car), this commute costs a gross of €5,400 per year. Even with full tax-free compensation from the employer, there remains a net deficit of thousands of euros that come directly from disposable income.

The “Location premium” versus the travel time tax

In the 2026 Dutch housing market, we see a clear correlation between the proximity of economic centers (such as the Randstad or Eindhoven) and housing prices. Those who decide to live in more affordable regions such as East Groningen or Zeeuws-Vlaanderen pay considerably less per square meter, but pay a “travel time tax”.

• Direct costs: Fuel excise duties were further increased in 2026 and train tickets at the NS increased by an average of 6.5%. A monthly route card between an affordable residential region and a large working city can easily cost €350 to €500 per month.
• Indirect costs: Time is money. Those who spend two hours a day on the road lose hundreds of hours a year that cannot be spent on work, sports or family. In 2026, the “effective speed” of living (distance divided by time including time needed to earn travel costs) will become an increasingly important measurement tool for financial planners.

Impact of hybrid working on the choice of home

In 2026, hybrid working will be the standard, but this will have a surprising effect on travel costs. Many people thought that fewer travel days would lead to lower costs, leading them to live further away from work. However, the fixed costs of mobility (such as road tax and insurance) will continue as usual.

In addition, the mileage allowance in 2026 is strictly linked to the days actually traveled. Those who only come to the office two days a week will also receive compensation for those two days only. However, the “fixed foot” of car ownership continues to weigh heavily on housing costs. If the home is further away, the dependence on that car increases, including for social activities or shopping, so that the total mobility bill per household will cover an average of 15% to 20% of the total budget in 2026.

The hidden costs of public transport

For tenants and buyers who rely on public transport to reduce costs, 2026 is a challenging year. Urban and regional transport rates have risen by around 4%. For homes that are not located directly at an intercity station, this includes the costs of a shared bike or a parking subscription at the station.

A home that is €100 per month cheaper but requires an additional €4 bus ride per day is, bottom line, more expensive. In addition, in 2026, we will see that the “travel deduction” via income tax is subject to strict conditions, such as a minimum travel distance of 10 kilometers and a maximum amount, which means that the shortest trips are often entirely at your own expense.

The car as a variable mortgage payment

When calculating borrowing capacity, banks will look more closely at fixed costs, including private lease contracts or vehicle loans, in 2026. A long journey time often forces people to buy a more reliable (and more expensive) car.

When the monthly costs for transport including depreciation and fuel rise to €600 or €700, this has the same impact on purchasing power as a 1% increase in interest rates on a €300,000 mortgage. For many households in 2026, the car actually became a “second mortgage”, which is inextricably linked to the choice of home location.

Taking travel costs into account in total housing costs is therefore crucial for realistic financial planning. A home is only really affordable if the trip to that home does not bankrupt you. In a country where space is scarce and mobility is expensive, the shortest route to savings is often not a cheaper home, but a shorter trip.