How does family size influence the choice between renting and buying

In the dynamic housing market of 2026, the question is “rent or buy?” no longer a mere financial calculation. For many households, the decisive factor is the composition of the dining table. Whether you're a single expat, a young couple wanting to have children, or a family of three adolescents, family size not only dictates how many square meters you need, but also which financial risks and tax benefits outweigh.

In 2026, with an NHG limit of €470,000 and an increased starter exemption to €555,000, the playing field changed. We dive deep into how the size of your family impacts the balance between renting and buying.

The starter and the “Compact” family (1-2 people)

For singles and couples without children, flexibility is often the greatest asset. In this phase of life, the scale will tend to rent more often in 2026, unless there is a clear long-term vision.

• Mobility vs. structure: A smaller household has less “physical ballast” and can move more easily for a career opportunity. Buying involves significant transaction and financing costs in 2026 that you will only recoup after an average of five to seven years.
• Financial advantage: With the new housing allowance rules in 2026, which removed the hard rent limit, even small households with a middle income can sometimes count on an allowance, which makes renting in the free sector more attractive.
• The buy option: However, for those who want to take root, the starter exemption from transfer tax of up to €555,000 is a huge incentive. It quickly saves a couple €11,100 in their own money, which significantly lowers the threshold for buying.

The growing family: The 'Space Clip'

As soon as children come into the picture, the need changes from “location” to “space and stability”. This is the point where many tenants will make the switch to buying in 2026, often driven by scarcity.

• The Defect Factor: In 2026, there will be a chronic shortage of large rentals with three or more bedrooms. The homes that are available in the free sector often have sky-high prices that often exceed the monthly costs of a mortgage.
• Predictability: A growing family needs a stable budget. Where rents may increase annually by a maximum of 4.4% (free sector) or 6.1% (mid-rent) in 2026, a mortgage with a fixed interest period of 10 or 20 years offers the certainty that housing costs remain nominally the same.
• Forced Savings: For parents, building up wealth through the home is a form of pension accrual and an inheritance for the children. Every repayment in 2026 is an investment in the future of the family, something that is completely missing when renting.

Thelarge family (5+ People): Risk and maintenance

For large families, the math in 2026 is paradoxical. As an owner, the need for a large home (often a single-family home or semi-detached house) involves greater responsibilities.

• Maintenance costs: A bigger house means a bigger roof, more painting and more frequent repairs. The rule of thumb of 1% of the reconstruction value for maintenance is hard for a large family home worth €600,000 (an additional €500 per month).
• The rental escape route: Some large families consciously choose to rent in 2026 to avoid this maintenance risk. In the free sector, the landlord is responsible for major maintenance. This provides financial peace of mind when, for example, the foundation, a growing problem in the Netherlands, needs to be addressed.
• Fiscal limits: Large families often have higher household incomes but also higher expenses. The maximum mortgage interest deduction of 37.56% in 2026 helps, but the “villataks” (home lump sum) for homes above €1.34 million could become a disadvantage for very large, luxury family homes.

Table: Impact of family size on housing choice (Forecast 2026)

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Family composition                           Preferred in 2026                        Main reason                                               Fiscal “sweet spot”

Single / Duo                                     Rent                                           Mobility & flexibility                            Larger housing allowance

Young family (1–2 children)            Buy                                           Lack of space in rental market          Starter exemption (< € 555k)

Large family (3+ children)              Buy                                           Wealth accumulation & stability         NHG threshold (€ 470k – € 498k)

Empty nesters                                 Rent                                          Convenience (no maintenance)         Box 3 home exemption

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The role of the “Starter exemption” and NHG in 2026

In 2026, we will see that family size will directly conflict with legal limits. A family that needs a larger home of, for example, €600,000 falls just outside the starter exemption (€555,000) and the NHG limit (€470,000).

This means that larger families have to deposit relatively more of their own money and pay a higher interest rate (without an NHG discount) than small households that move into a €400,000 apartment. As a result, renting for a large family can sometimes be a necessary evil in 2026, simply because the “entry costs” for a suitable home for sale are too high.

The sustainability factor

Large family homes use more energy. In 2026, the Energy Label will be a determining factor. A buyer of a large house with the A++++ label can borrow up to an additional €30,000 in 2026. For a large family, this can make the difference between a drafty rental house with an energy bill of €400 per month, or a modern home for sale with almost zero on the meter.

The core: Customization is the norm

Family size is the invisible hand behind your housing decision.

• Are there few of you? Cherish your flexibility and consider renting, unless you want to redeem that €11,000 starter exemption immediately.
• Is your family growing? The stability and wealth accumulation of an own home will be almost unbeatable in 2026, provided that the home falls within the tax limits of €555,000.
• Do you have a big family? Be alert to maintenance costs and higher interest rates outside the NHG borders; renting can sometimes be a safer, if more expensive, alternative here.

This video provides an up-to-date picture of housing costs and market trends in 2026, which is essential to understand how the costs for different family homes compare.