Buying a house in Lisbon, Porto, and Faro has become a dream. Effort rate exceeds 50% of income

Thursday, 5 February 2026RSS
Buying a house in Lisbon, Porto, and Faro has become a dream. Effort rate exceeds 50% of income

The increasing cost of housing in major Portuguese cities has made home ownership a distant goal for many, as the effort required now surpasses half of their earnings.

Context & Explainers

Local accommodation (alojamento local) means short-term tourist rentals—private apartments, houses or rooms rented for days or weeks—that must be registered and licensed with municipal authorities. Municipalities can suspend or cancel licences (Lisbon cancelled about 6,700 licences in early 2026), so travellers and hosts should check a listing's registration and local rules before booking or offering stays.

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