A new European report has once again placed Lisbon at the center of the debate on the cost of living, revealing that the Portuguese capital is the city in the European Union where the share of the average salary allocated to rent is highest. The conclusion, confirmed by official data, has generated great impact on social media.
According to Polígrafo, a Portuguese fact-checking newspaper, the discussion began with a post on Instagram that ordered several European cities according to the percentage of the average salary needed to pay for housing. Among the values presented, the case of Lisbon stood out, in the Portuguese city the average income represents 116% of the average salary.
The number, which seems almost impossible at first glance, led many users to question the veracity of the list. However, the report that gave rise to it does exist and was published by the Council of the European Union in October 2025.
Lisbon isolated at the top of the ranking
The document analyzed data from 22 European cities and concluded that Lisbon is the only one where the average cost of rent exceeds the value of the average monthly salary. None of the remaining locations come close to a similar scenario.
The statistical basis used in the report is from the Deutsche Bank Research Institute, which collects data on income, housing and cost of living in several countries. The combination of these indicators made it possible to draw a clear picture of the financial pressure that weighs on those living in the Portuguese capital.
According to the same numbers, Barcelona and Madrid appear right behind in the ranking, both with 74%. This is followed by Milan (72%), Rome (65%) and Dublin (62%), all large European cities where the cost of living has been increasing.
Social networks amplify the alert
The list quickly circulated on digital platforms, mainly because Lisbon appears highlighted in an unusual position: not just above the other cities, but on a completely isolated level.
According to the same source, the difference between Lisbon and the rest of the podium, more than 40 percentage points, helped to accentuate the debate. Many users shared personal experiences about the difficulties in finding affordable housing or balancing budget and fixed expenses.
The original publication on Instagram corresponds almost entirely to the data contained in the report, although this presents a more extensive version, with more cities included.
Pressure continues to rise
Although the report refers to the year 2025, several analyzes carried out throughout the year suggest that the trend will continue, with pressure on the rental market intensifying. Lisbon has seen significant increases in rents over the last few years, accompanied by slower wage growth.
For many families, the discrepancy between disposable income and housing costs has represented an increasingly difficult burden to bear. The value of 116% shows that, on average, the salary does not even cover rental expenses, forcing them to resort to additional income.
This scenario places Lisbon among the cities most at risk of losing housing accessibility in Europe, a warning repeated by several national and international entities.
A structural challenge
The Portuguese capital continues to attract residents, tourists and foreign investment, but the balance between housing supply and demand remains fragile. The report from the Council of the European Union reinforces the idea that structural intervention will be necessary to stabilize the market.
Although some affordable rental programs have been launched in recent years, their scale remains insufficient given the scale of the problem. For many residents, especially young people and middle-class families, living in Lisbon is becoming increasingly difficult.
According to , the European figures now released once again highlight the urgency of this discussion and show that the Portuguese capital faces a challenge that has already gone beyond national borders.
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