Portugal Accumulates 300,000-Home Deficit Since 2014 as Prices Double and Jump 19% in 2025
Updated
Updated · The Portugal News · Jul 18
Portugal Accumulates 300,000-Home Deficit Since 2014 as Prices Double and Jump 19% in 2025
1 articles · Updated · The Portugal News · Jul 18
Summary
More than 300,000 homes are missing in Portugal versus new household formation since 2014, according to a Morningstar DBRS study, underscoring a supply gap that has widened even as affordability deteriorates.
Prices have nearly doubled since 2019 and rose another 19% in 2025, while DBRS says supply still cannot catch up because builders face labor shortages, high material and wage costs, scarce build-ready land and slow licensing.
Demand may cool as immigration slows, financing tightens and higher rates push families out of the market, but the report argues those pressures will not solve the structural shortage.
DBRS says it is premature to call the market a bubble, noting household debt has fallen sharply, with debt-to-disposable income dropping from about 100% in 2008-2012 to around 50% in 2025.
The study frames housing as an economic competitiveness issue, warning that without faster approvals and more public and private investment, Portugal will keep redistributing scarcity rather than adding homes.
Portugal has 700,000 vacant homes. Why can't they solve the housing crisis?
With Golden Visas gone, why are Portugal's housing prices still the fastest-growing in the EU?
Portugal’s Escalating Housing Crisis: Causes, Consequences, and the Path to Affordable Homes
Overview
Portugal's housing crisis has intensified, with the housing price index soaring to 280 by late 2025—a 22.4% annual jump—driven by fierce buyer competition and a persistent shortage of available properties. This sharp rise in prices has made homeownership increasingly unattainable for many, deepening affordability challenges. Although early 2026 saw a slowdown in real estate transactions, the underlying issues of high costs and limited supply remain unresolved. As a result, more residents are struggling to secure adequate housing, highlighting the urgent need for effective policy reforms and increased housing supply to restore balance to the market.