Rising rental costs are forcing many households to take in unrelated people or share accommodation with strangers to afford housing, creating overcrowding, reduced privacy and added financial stress. Reports highlight families and single parents accepting lodgers or merging households as a survival strategy amid tight supply and high rents. Tenants and those searching for rental housing should factor in increased competition and consider contract safeguards before taking on housemates.

Update: Público republishes Lusa interviews with personal testimonies that detail crowded living arrangements and financial stress, including accounts of mothers sharing rooms with daughters and of households foregoing appliances, reinforcing earlier reporting on worsening overcrowding and basic-living pressures caused by high rents.

In Lisbon, Vitória lives with her boyfriend and her daughter in a three-bedroom flat shared with another family — a mother who has two daughters. In Porto, Gabriela sleeps in the same room as her two 16-year-old daughters. There are increasing cases of families sharing homes.

Economist João Rodrigues de Santos warns that a public guarantee scheme is encouraging young people to take on mortgages with high repayments and minimal financial headroom, just as Portugal faces major international uncertainty. With wages among the third‑worst in the EU, the end of pandemic-era supports and the prospect of rising interest rates, many borrowers — including first-time buyers and expats — are exposed to rapid financial distress. The combination of weak income growth, a heated property market and policy incentives to lend underestimates downside risks; the commentator argues for tighter underwriting, better safety nets and targeted borrower support to reduce systemic vulnerability.

Update: The economist reiterated in a CNN Portugal piece that the public guarantee is actively pushing young buyers into mortgages with high repayments and little buffer amid heightened international uncertainty. He highlighted that the withdrawal of pandemic-era supports and the prospect of rising interest rates mean many borrowers — notably first-time buyers and expatriates — could rapidly fall into financial distress, strengthening his call for stricter underwriting standards and targeted safety nets to contain systemic risk.

ECO reports the Euribor moved higher for the three‑ and six‑month tenors while the 12‑month rate fell; the three‑month rose to 2.033%, the six‑month to 2.143% and the 12‑month stood at 2.248%. These short‑term oscillations can influence variable‑rate mortgages and refinancing costs in the weeks ahead. Mortgage holders and prospective buyers should check loan indexation clauses and lender notices for immediate impacts.

Dinheiro Vivo reports that buying a house in metropolitan and tourist areas in Portugal can be up to seven times more expensive than elsewhere, with Lisbon averaging around €650,000 and other hot spots like Madeira and Faro also well above national norms. The data underline stark regional price divergence that affects affordability and relocation choices. Those searching for housing should factor in significant local premiums and consider suburban or inland alternatives.

Portuguese reporting indicates a sharp rise in monthly fees at some care homes — increases of roughly €500 — driven largely by a persistent labour shortage and higher operating costs. The hikes are prompting families to withdraw elderly relatives, intensifying pressure on informal care networks and raising equity and access concerns for vulnerable patients. Economically, the trend highlights how rising labour costs and constrained staffing can be passed directly to users in minimally regulated markets, with implications for social policy, funding models and workforce recruitment/retention. Separately, French coverage notes a demobilisation of farmers’ protests in Paris, underscoring a wider context of labour and sectoral tensions across services and primary production.

Rising costs of medicines are a primary barrier to healthcare for the most disadvantaged, forcing some patients to cancel appointments and tests for lack of funds. This creates widening inequalities in health outcomes and places additional strain on services; addressing the problem requires policy responses such as targeted subsidies, improved coverage, price regulation and better access to affordable medicines.

In 2025, 14.26% of people reported not seeking healthcare when needed, reflecting significant access barriers in Portugal. More than half of the poorest households cannot afford all prescribed medication, while over 50% of initial consultations in the National Health Service (SNS) occur outside the appropriate timeframe. These findings point to intersecting problems of affordability and timeliness that disproportionately affect low-income groups and signal the need for targeted policy responses to improve medication coverage, reduce waiting times and strengthen primary-care access.

Official reporting says average house rents rose 5.3% in 2025, with the largest regional increase in Madeira (6.9%). The rise will matter most to tenants and those searching for rentals — renters should expect continued pressure on budgets and factor increases into housing searches and lease negotiations.

INE confirmed annual inflation eased to 2.3% in 2025, a 0.1 percentage‑point drop from 2024; food was the largest contributor to price increases over the year. The data come from the Consumer Price Index as compiled by the National Institute of Statistics (Instituto Nacional de Estatística or INE). For residents balancing household budgets, slower headline inflation may ease pressure but food-price rises mean grocery bills remain important to monitor.

Survey-based reporting finds an increasing share of people no longer rely solely on the National Health Service and are turning to private healthcare providers; analysts say access difficulties in the SNS are a key driver and that wealthier patients who switch rarely return to public care. Residents who depend on the SNS should plan for longer waits for some services and weigh private options if timely access is critical.

Galp customers have received large, delayed bills—some reported above €500—after months without regular billing; the Energy Services Regulatory Authority has registered around 80 complaints and reminds the company it must offer payment plans and may be required to compensate affected consumers. The disruption stems from billing interruptions dating back to September and the regulator is pressuring remedies. Expats with Galp accounts should review recent invoices, request instalment plans from the company and register complaints with the regulator if needed; keep proof of bills and communications.

Reports claim more than 700,000 homes are currently empty in Portugal, with many left off the market because owners feel insecure and others needing renovation. Coverage highlights both market and structural issues that keep properties unused. For expats looking to buy, rent or renovate, this signals opportunities in some areas but also warns of renovation costs and local regulatory or fiscal hurdles.

New data from Portugal's Survey on Living Conditions and Income show one region has the country's highest incidence of monetary poverty, with 17.9% of residents living below the poverty threshold. Analysts and local actors attribute the rise to a combination of state neglect, insufficient social-protection measures, the growth of precarious immigration and unstable work, and wider cost-of-living pressures — factors that together depress incomes and worsen social indicators. The figures point to a need for targeted regional policies on social security, employment quality and integration to reverse the trend.

Presidential candidate André Pestana said Portugal should prioritise domestic social and environmental needs rather than increased defence spending, declaring he does not want “a single euro more for NATO”. He argues the fight should be against low wages and pensions, environmental degradation and the deterioration of public services, and proposes that funds currently transferred to private health providers be redirected into the National Health Service (SNS), claiming a large share of the state health budget is going to private companies.

Housing prices have risen to levels that many describe as obscene, driven by a mix of constrained local supply, strong demand, low borrowing costs and investor activity. The resulting price inflation has undermined affordability, altered living choices and intensified regional disparities in property markets. Policy responses and planning changes will be central to cool inflation and expand accommodation options in affected areas.

The Government's housing plan, due for debate and a vote on Friday, is expected to pass after Chega signals it will abstain. Although Chega's final voting decision is not yet locked in, the party led by André Ventura intends to abstain so it can later table and negotiate amendments during the committee stage. The abstention effectively allows the bill to advance despite the Government lacking a clear majority, with potential implications for property costs, local housing policy and market regulation as the measure moves to detailed scrutiny.

JP Morgan analysts Aditya Chordia and Matteo Mamprin assign a roughly 50% probability that Moody’s will upgrade Portugal’s sovereign credit rating at its scheduled review in May, putting an upgrade within about four and a half months. The bank’s view reflects an assessment that Portugal’s improving economic fundamentals, fiscal position and lower borrowing costs have materially strengthened its credit profile, reducing downside risks. An upgrade as soon as May would tighten financing spreads, reinforce investor confidence and mark another step in Portugal’s long post‑crisis recovery; market participants should monitor sovereign metrics and rating signals in the run‑up to the review.

Real-time analytical coverage of financial markets and economic developments on 6 January, including market moves, key data releases and macro indicators. Commentary focuses on consumer confidence and cost pressures, investor sentiment and flows, implications for investors and expat households, and the significance of today’s indicators for policy and markets.

Humberto Correia frames his presidential bid around his personal experience of poverty, presenting himself as a candidate who understands the everyday suffering of the Portuguese. He singles out the housing sector as a ‚disaster‘ and signals that addressing property, cost-of-living and related social stresses will be central to his campaign, positioning his lived experience as the basis for policy credibility.

From 2026, new cars will be fitted with additional safety equipment mandated by regulators to reduce road accidents. The measures should lower collisions and casualties and could bring long‑term savings in insurance and healthcare, but they will increase manufacturers’ costs and are likely to push up new‑car prices. Policymakers will need to balance public‑safety benefits against affordability, using tools such as subsidies, tax incentives, phased implementation or targeted support to lessen the impact on lower‑income buyers.