All cities in the metropolitan areas of Lisbon and Porto, as well as in the Algarve region, have become “inaccessible” for a middle-income family looking to rent a home for the first time, concludes a study by real estate agency Century 21.
According to the same analysis, the capitals of the three areas considered – Lisbon, Porto and Faro – are also “totally inaccessible” in terms of purchasing housing, as they require effort rates greater than 50% of the average family income.
In the Algarve, purchasing your own home is also classified as “unaffordable”, while in the Lisbon Metropolitan Area (AML) there are nine municipalities where buying a house exceeds “the 50% effort threshold”.
Prices rise much more than income
The study “Accessibility to Housing”, by the real estate agency Century 21 Portugal and released today, indicates that sales prices and rent values “have increased by 40% or more in most municipalities” in the AML since 2022, while the income of inhabitants “has grown by around 15%”, at a rate three times slower.
“Buying a 90 square meter house today involves 68,000 to 114,000 euros more than three years ago, which translates into installments around 300 euros” above the values practiced in 2022.
In rent, increases in the last three years have been around 400 euros per month, compared to salary increases that the study estimates at around 200 euros.
In the Porto metropolitan area (AMP), prices and rents rose by more than 50% in most municipalities, in the same period of time, while family income “grew by only 18%”, according to the analysis.
The increase in the purchase price at AMP is between 66,000 and 102,000 euros, implying additional payments of 230 to 400 euros.
When renting, increases in value are around 280 to 500 euros per month.
In the Algarve, buying a house has required an additional 65,000 to 106,000 euros since 2022, and renting has required monthly increases of 300 to 570 euros.
The income of inhabitants in the Algarve region rose by 170 to 240 euros.
Interior maintains some accessibility, but supply is insufficient
The study concludes that house prices have practically doubled in the last five years in Portugal, registering a new acceleration of 23.4% in 2025.
The same analysis also estimates that “access to purchasing became impossible in coastal capitals for an average family, but remained viable in most interior cities”.
Inland, prices in 15 district capitals represented effort rates below 50% of income, but only in seven were they considered “affordable” as they implied effort rates below 33%.
As for rent, only two cities in the interior offered values without requiring high effort, that is, less than 33% of income.
The study also establishes that only 48% of houses for sale are “within the reach of 77% of families (up to 330 thousand euros), in a clear structural imbalance”.
“The problem is not abstract: it is measurable. The supply is not aligned with the economic reality of families. This pushes many households to effort rates that are incompatible with a stable life”, declared the executive president (CEO) of Century 21 Portugal, Ricardo Sousa, in a statement.
The Century 21 Portugal study focused on access to housing for those looking for their first home in their city, especially families and young people, and was based on prices and rents provided by Confidencial Imobiliário (SIR), considering homes measuring 90 square meters and 2025 values practiced in mainland Portugal.
The average income used corresponds to the declared gross income deducted from IRS by tax aggregate in 2023, with a projection for 2024 based on the annual evolution of private consumption estimated by .
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