Portuguese families burdened by housing costs

Housing consumes a large part of the family budget

The effort rate of Portuguese families remains at worrying levels, both for renting and buying a home. Housing costs absorb a significant portion of monthly income, limiting saving capacity and access to other essential expenses.

Renting continues to be the most financially demanding form of housing, especially in urban and tourist areas. In many cities, families spend almost all available income just to pay rent. In home buying, mortgage payments also represent a considerable burden on budgets, even with the slight drop in interest rates.

The lack of supply, rising prices and stagnant incomes continue to worsen the problem, making it increasingly difficult to find affordable housing solutions.

Renting is more expensive in urban areas

Cities with the greatest rental challenges are mainly on the coast and on islands. Lisbon, Faro and Funchal stand out for high rental costs, while Porto, Setúbal, Aveiro and Braga also show effort rates above what is considered healthy for family budgets.

In inland areas such as Portalegre, Guarda or Bragança, the situation is less severe. Here, rental costs are more in line with average incomes, highlighting the stark contrast between inland and coastal regions. The price differences between these regions show how market imbalance continues to push families away from major urban areas.

Buying a home remains a challenge

For home purchases, the national effort rate also remains high. Buying a property is particularly difficult in large cities and regions with high tourist demand. In Lisbon, for example, the average cost of a property is well above the purchasing power of most households.

On the other hand, some inland district capitals, such as Guarda, Beja or Bragança, still offer more affordable prices, allowing families to buy a home without committing their entire income.

Despite these exceptions, the housing market in Portugal remains unbalanced, with sales prices in most cities exceeding what would be financially sustainable for an average family.

Effort rate highlights inequality in housing access

The effort rate is an indicator measuring the weight of housing on the family budget, both in rent and mortgage payments. Recent results confirm that living in Portugal is becoming increasingly expensive, and access to adequate housing is far from a reality for many households.

While some inland regions still offer more balanced opportunities, coastal areas and major cities face growing pressure, where the costs of renting or buying a home far exceed average incomes.

This situation underscores the urgent need for housing policies that promote affordable construction, urban rehabilitation and population redistribution, reducing inequalities in access to housing and making the market more sustainable in the long term.

Source: SUPERCASA