Lisbon Home Price-to-Income Ratio Hits 18.7 as Portugal Prices Outrun Wages by 240%-59%
Updated
Updated · Euronews · Jun 26
Lisbon Home Price-to-Income Ratio Hits 18.7 as Portugal Prices Outrun Wages by 240%-59%
3 articles · Updated · Euronews · Jun 26
Summary
Lisbon homes now cost about 18.7 times a typical household’s annual income, tying Croatia’s Split for the worst affordability among major European cities in Numbeo’s latest data.
Portugal’s housing strain reflects a decade-long gap between prices and pay: national house prices rose nearly 240% in 10 years, while average wages increased about 59%.
In Lisbon, a central flat costs roughly €6,763 per square metre, putting a modest 50-square-metre apartment near €338,000 against average annual net pay of about €17,000.
Supply remains a key constraint: Portugal completes only 25,000 to 30,000 homes a year versus estimated demand for 45,000 to 50,000, while social housing is just about 2% of stock.
Despite protests and worsening affordability, economists do not expect a near-term crash; Banco de Portugal cites strict lending limits, and BPI now forecasts 2026 house-price growth of 11.7%.
With new taxes and scrapped visas, why do experts predict Lisbon's housing market will continue its relentless climb?
As essential workers are priced out of Lisbon, who will be left to run the city's booming economy?
Lisbon’s Housing Affordability Crisis 2026: Home Prices Outpace Incomes by 4x, Price-to-Income Ratio at 19
Overview
Lisbon’s housing market in mid-2026 faces a severe affordability crisis, with the price-to-income ratio soaring above 10 and median house prices among the highest in Portugal. This crisis is driven by a surge in national asking prices, which reached a record €3,121 per square metre in April 2026 after a 10.8% annual increase and six consecutive months of historic highs. The main cause is a scarcity of available turnkey properties, pushing prices up even further. As a result, homeownership is becoming increasingly out of reach for many residents, highlighting the urgent need for effective solutions.