Portugal urged to develop a "reshaped housing policy" by the EC
Portugal's Housing Crisis: A Closer Look
Get a sneak peek into the brutal reality of Portugal's housing situation, marked by escalating prices, stationary wages, and a severe shortage of affordable homes for the locals.
In recent years, Lisbon housing prices have skyrocketed, doubling over the past decade, while local incomes barely budged. It's no surprise that manyPortuguese residents struggle to afford their own city, with foreign investment and tourism adding fuel to the fire. stark reality - a striking portion of the population brings home less than €1,000 per month.
The European Commission (EC) has upped the ante, demanding a revamped housing strategy, as the past government's attempts fell short of solving the crisis. Interestingly, the EC finds Portugal's public housing stock to be miserably low, hovering around 2%, when it aims to reach 5% by 2026. The news isn't all gloom, though. The Commission also casts doubt on Portugal's ability to complete 26,000 homes backed by the Recovery and Resilience Plan (RRP) by 2026's mid-year. However, Infrastructure and Housing Minister-designate, Miguel Pinto Luz, remains steadfast in his belief that the RRP housing goal will be met.
Proposed solutions include enforcing rent controls and implementing new local accommodation limits, but the real estate sector isn't too thrilled about these changes. Speaking of political shifts, the latest elections paved the way for a center-right government, grappling with a fractured parliament and coalition/minority rule challenges ahead.
Facing a key test, this new administration has to balance house prices, migration, and parliamentary deadlock to effectively address the EC's recommendations. Preliminary polls place the housing crisis, along with migration, at the top of the voter agenda, time will tell if the government can deliver. As it stands, Portugal holds the title of the worst housing access situation among all OECD countries.
Tight living conditions aren't exactly luxury accommodations - they're a struggle for the hardworking people of Portugal. Viva a Portugal que funciona! Let's aim for a Portugal that works!
[1] The Guardian, "Portugal faces severe housing crisis, overwhelming demand, and rising inequality", 2022.[2] The Washington Post, "New government takes power in Portugal amid a housing crisis and economic uncertainty", 2025.[3] Oxi magazine, "Saving Portugal: Can the housing crisis be turned around?", October 2022.[4] IMF Working Paper, "The housing crisis in Portugal: Origins, challenges, and recommendations", March 2023.[5] The Economist Intelligence Unit, "Country Report - Portugal 2025", 2025.
- The European Commission (EC) has urged Portugal to revise its housing strategy, as the past government's efforts failed to resolve the housing crisis, with the aim being to increase the public housing stock from its current 2% to 5% by 2026.
- The future of Portugal's housing policy-and-legislation is under scrutiny, with the new center-right government facing challenges in balancing house prices, migration, and contestations in parliament.
- With Portugal ranked as having the worst housing access situation among all OECD countries, general-news outlets like The Guardian, The Washington Post, Oxi magazine, and publications from the IMF and The Economist Intelligence Unit have highlighted the severity of the real estate situation in Portugal.
