Why buy when rents keep rising

In the 2026 housing market, many Dutch people face a bitter paradox. On the one hand, housing prices seem unattainably high, but on the other hand, tenants in the free sector are facing annual increases that are slowly eroding their disposable income. The sentiment “renting is a waste of money” is often dismissed as a past cliché in 2026, but the hard numbers tell a different story.

Why take the step to buying a home in 2026, especially now that the market is under so much pressure? The answer lies not in today's price, but in tomorrow's costs. In this article, we investigate why buying is the only way to take back control of your financial future, especially when rents rise.

The inflation hedge: Set your housing costs

The biggest danger of renting in 2026 is uncertainty. Tenants in the free sector have to deal with indexation clauses that increase the rent annually in line with inflation (CPI), often with an additional 1% surcharge.

As a buyer, you do exactly the opposite: you lock in your largest monthly cost.

• Nominal stability: When you take out a mortgage in 2026 with a fixed-interest period of 20 years, you know exactly what you'll pay in 2046 in the euro.
• Relative decline: While your income is likely to increase over the years (due to inflation adjustments and promotions), your mortgage burden remains the same. As a result, living becomes a smaller percentage of your spending pattern each year. For a tenant, however, the housing load grows with income, so they never experience that “breathing space”.

The structure of a “Forced savings plan”

In 2026, the annuity mortgage will be the standard. Although this means that you pay a lot of interest in the first years, you will also be paying off the debt from the first month.

• Power in the bricks: Every euro you repay is converted into equity. With a rental home, you accrue assets for the landlord; with a home for sale, you accrue your own pension.
• The leverage: In 2026, we will see that even a modest price increase in the housing market will have a huge impact on your equity. Because you buy the house with borrowed money, the increase in value works over the entire purchase price, not just on your own deposit. This is an accelerator of wealth that a tenant simply has no access to.

Fiscal privileges in 2026

Although the mortgage interest deduction (HRA) has been cut over the years, the buyer will still be fiscally cheaper than the tenant in 2026.

• The starter exemption: In 2026, the transfer tax exemption limit for starters under 35 was increased to €555,000. This is a direct subsidy from the government that is only available to buyers.
• Box 1 vs. box 3: In the Netherlands, your own home is taxed in Box 1 (at a low rate via the home lump sum), while saving or investing as a tenant is quickly taxed in the heavier Box 3. The tax authorities actually encourage you to “store” your assets in your home.

Power over the m2: Sustainability and comfort

In 2026, energy costs will be a determining factor for your living pleasure. A tenant depends entirely on the landlord's goodwill for insulation, solar panels or a hot pump.

• Investing in returns: As a buyer, you can borrow extra in 2026 for energy-saving facilities. This investment immediately reduces your monthly energy bill and increases the market value of your home.
• Self-determination: Do you want an extension, a new kitchen or a dormer window? In a home for sale, these improvements translate into living pleasure and value. In a rental property, such investments are often a gift to the owner.

Renting vs. buying over a period of 15 years (Forecast 2026)

At the start, renting often appears cheaper than buying. A tenant in the free sector might begin with housing costs of around €1,600 per month, while a buyer with a €450,000 mortgage may face gross monthly payments of roughly €1,850. However, rental prices tend to rise over time. With an assumed annual increase of about 3 percent, monthly rent could grow to approximately €2,450 after 15 years. Mortgage payments, on the other hand, gradually shift as part of the payment goes toward repayment, which can reduce the effective net cost over time to roughly €1,350 per month after tax benefits and repayment effects.

Another major difference is long-term financial outcome. Tenants generally do not accumulate capital through rent payments, so after 15 years the financial return remains zero aside from the value of housing consumed. Homeowners, however, gradually repay part of their mortgage and may build roughly €180,000 in equity over the same period. Maintenance costs are also structured differently: renters usually have maintenance included in the rent, while homeowners must cover upkeep themselves, often estimated at about 1 percent of the property value annually. Ultimately, the long-term result differs significantly, as renting depends entirely on market conditions, while buying can lead to ownership of a valuable asset.

Tomorrow's social security

Rent increases don't stop when you retire. In 2026, many seniors are worried because their pensions are not rising fast enough with rents.

The buyer who joins in 2026 will have a repaid house in 30 years. This means that housing costs will currently fall to just maintenance costs and local taxes. This offers tremendous financial security in the fall of a lifetime, a luxury a tenant will never know as long as commercial rents keep rising.

The risk of not getting in

Many people are waiting for a “crash” in house prices in 2026. However, due to the ongoing tightness and rising construction costs, the underlying value of real estate remains solid.

• The rental trap: While you wait for lower prices, you'll pay a high rent each month. You will permanently lose this money.
• Missed excess value: If the market rises by 5% in two years, a €450,000 home will have already become €22,500 more expensive. This is an amount that you, as a tenant, must first save extra, on top of your regular expenses.

The crux: Opting for the long term

Buying in 2026 takes courage and a solid financial foundation, but the reason to do it is more urgent than ever. When rents rise, buying is the only way to protect yourself against the inevitable depreciation of money and to build up your own capital.

Renting offers short-term flexibility, but buying offers freedom for the rest of your life. In a world where rents tend to only go up, your own home is the only anchor that keeps you financially secure.

‍