A new study published in the Journal of Maps analysed more than 22 million property listings across over 30 European countries between March 2024 and March 2025.

Researchers looked at how much housing someone earning an average local salary could afford if they spent one third of their income on a 30-year mortgage.

The results place Portugal among the countries described as “systematically unaffordable” for buyers earning average salaries, alongside the Netherlands and Switzerland.

The Lisbon Metropolitan Area is among the European regions where an average salary allows a buyer to afford less than 50 square metres of housing. Porto faces similar pressures, although slightly less severely.

The Algarve also stands out in the study as one of Europe’s tourism-related housing affordability hotspots.

Researchers point to the combination of relatively low local salaries and property prices increasingly influenced by tourism, demand for second homes and international investment.

The problem is particularly concentrated along Portugal’s coast. Lisbon, Porto, the Algarve and several coastal municipalities between Setúbal and Braga show some of the country’s lowest levels of housing affordability.

In contrast, parts of the interior North, Centre and Alentejo remain considerably more affordable.

However, researchers warn that cheaper property does not necessarily mean these areas are a practical alternative, as some have fewer employment opportunities, weaker transport connections and limited housing supply.

Renting is also increasingly difficult

Buying is not the only challenge.

The study found that a significant proportion of people in Portugal live in municipalities where an average salary is no longer enough to rent a home of around 50 square metres while keeping housing costs within one third of income.

Lisbon is among the most severely affected areas in Western Europe, while Porto, the Algarve and other coastal regions are also experiencing significant rental pressure.

The situation reflects a wider European housing problem. Around 44% of Europe's population lives in municipalities where an average salary would allow someone to buy less than 50 square metres of housing under the study's calculation.

Meanwhile, 39% live in areas where an average salary is insufficient to rent a 50-square-metre property while keeping housing costs within the recommended one-third of income.

Researchers argue that areas experiencing the greatest pressure may need more targeted housing measures rather than one solution applied nationally, particularly in metropolitan areas and popular coastal tourism destinations.