Latest news and stories about housing affordability in Portugal for expats and residents.
New data indicates that Portuguese families spend an average of 82 percent of their household income on rent, while the affordability ratio for home purchases stands at 76 percent. Faro and Funchal report the highest cost burdens, with residents in Faro spending 101 percent of their income on housing costs.
Lisbon is now one of the least affordable housing markets in Europe, with homes costing approximately 18.7 times the average annual household income. Data from the platform Numbeo indicates that only the Croatian city of Split matches this high price-to-income ratio, making home ownership increasingly difficult for local residents.
Paula Franco, president of the Order of Certified Accountants (OCC), told parliament that applying a 6% VAT rate to construction as currently conceived is “not viable”. She warned the proposal could have serious implications for construction costs, accounting compliance and housing affordability and urged a rethink of the reform’s design.
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.
The consumer protection association Deco proposes a set of 18 initiatives aimed at the Portuguese government to address the housing crisis and improve market affordability.
The largest increase in the ratio between housing prices and household income per capita was recorded in Portugal. At the opposite end, Romania recorded the largest decrease among member states.
Home News Portugal among hardest countries in Europe to buy a home on average salary Portugal among hardest countries in Europe to buy a home on average salary Portugal has been identified as one of the most difficult countries in Europe to buy a home on an average salary, with Lisbon, Porto and
In the previous period, between 2009 and 2021, the weight of mortgage payments was less than 30%.
There is an entire generation of Portuguese who will never have a home. This is not alarmism or exaggeration. It’s mathematics. And mathematics, unlike politicians, doesn’t deceive.
A guarantee scheme covers over 42% of housing loan contracts taken out by young borrowers in 2025.
Home News House prices rose 20% in Portugal House prices rose 20% in Portugal 2025 was a year of overall price increases. The real estate market is one of those that saw the biggest difference compared to the previous year, due to several factors that will be mentioned in this article.
The president of the Order of Certified Accountants (OCC) said on Tuesday that the proposal to cut VAT to 6% on the construction of homes for rent or sale at moderate prices is a 'huge risk' for companies if it is not amended. Paula Franco even foresees 'the same film' as in the recent past, in which ...
What is needed to bring house prices down? Experts point to the supply of housing as the main problem.
The Finance Minister said on Wednesday that around 70,000 young people benefited from the IMT and Stamp Duty exemption when buying a home, while the public guarantee covered 23,000 young people. In a hearing before the Budget, Finance and Public Administration Committee, Joaquim Miranda Sarmento stressed that the Government is 'betting on ...'
The OECD releases a report today analysing Portugal's housing situation, examining affordability, supply and policy recommendations.
Mariana Leitão says the current price of housing in Portugal is a 'social scourge'.
