The 1º Direito program, considered one of the main responses to the housing crisis, is exacerbating regional inequalities in Portugal. According to recent data, more than two-thirds of the homes financed under this initiative are concentrated in the metropolitan areas of Lisbon and Porto, leaving the remaining regions with a much smaller share of public investment in affordable housing.
According to Público, the program, created in 2017 to increase public housing stock and reduce the burden of housing costs, has already approved more than 2.3 billion euros for the construction and renovation of 32,000 homes. However, "almost 70% of these homes are in the metropolitan areas of Lisbon and Porto," and more than 63% of the approved amount is allocated to the same regions. This data was collected by researcher Aitor Varea Oro of the University of Porto and helps highlight the territorial imbalance in the program's implementation.
The newspaper notes that, despite the greater population density in these areas, the lack of affordable housing is widespread throughout the country. Even smaller municipalities, such as Portalegre and Bragança, face a lack of supply and rising prices. Many researchers believe this disparity in resource distribution also stems from the "greater technical and institutional capacity" of metropolitan municipalities, which are able to approve and execute applications more quickly. A study cited by the publication concludes that a municipality in the Lisbon region has a 94% chance of obtaining funding, while a similar municipality in the Central region has only a 48% chance.
Another factor contributing to this inequality is the way investment is being allocated. Most of the 1º Direito funds are allocated to renovation rather than new housing construction – only 6,708 homes will be new, of which 4,268 are in Lisbon and Porto. Público also emphasizes that the average investment per home, around 72,000 euros, "is well below the estimated average construction cost," which raises doubts about the depth of the interventions carried out.
For now, despite the government's announced program reinforcement, the 1º Direito reveals an uneven picture: while major cities are adding investments and new housing, the interior continues to struggle to take the first step in responding to the housing crisis.















People are never happy! This is exactly what happens when you let government interfere in absolutely every single aspect of your life: incompetence and unfairness! At €72,000, these houses will be made out of cardboard, and rapidly fall into disrepair. That´s even if the budget for construction isn´t massively overshot.
How about getting government out of our lives, and letting market forces allocate property to individuals? Is that too much like people relying on their own initiative and efforts? Government shouldn´t be subsidising housing, or provising social(ist) housing at all. Leave that tothe market. People should have to work and contribute to society to afford their needs, and not expect them to be supplied by the state.
By Billy Bissett from Porto on 11 Oct 2025, 13:18