1. His family live in New York.

2. His family lives in New York.
[Which one is grammatical? Do we have to use a singular verb or a plural verb?]

Family is usually considered singular. So the correct word is "lives." He lives.

If you wanted it to be plural, you'd say something like, "Every member of his family live in New York."

Singular:

His family lives in New York. (The subject is "family" and thus needs the singular verb form.)
Every member of his family lives in New York. (The subject is "member" and thus needs the singular verb form.)

Plural:
All members of his family live in New York. (The subject is "members" and thus needs the plural verb form.)

Both sentences are grammatically correct, but they have slightly different meanings and usage.

1. "His family live in New York": In this sentence, the plural verb "live" is used because we are referring to multiple individuals within the family. Each member of the family is considered as an individual, therefore the verb agrees with the plural subject "family."

2. "His family lives in New York": In this sentence, the singular verb "lives" is used because we are treating the family as a collective unit. The focus is on the family as a whole, rather than the individual members.

The choice between using a singular verb or a plural verb depends on the intended meaning and the context of the sentence. In general, you can use either form, but it's important to maintain consistency throughout your writing.