The housing supply in Portugal has experienced a significant drop of 38.6% over the past decade, leading experts to characterize the issue as structural rather than cyclical. In the second

quarter of this year, the housing market featured just over 58,000 properties for sale, whereas in 2014, there were nearly 95,000 available homes. The decline in housing stock has been particularly pronounced since 2018, with a continuous decrease noted until June.

Data from Confidencial Imobiliário, sourced from the Residential Information System, has revealed this concerning trend in the country. According to Ricardo Guimarães, director of the consultancy, this situation underscores a severe lack of housing supply, contributing to heightened demand amidst low levels of new construction.

Several factors have contributed to the surging demand for housing. The 2021 Census demonstrated a significant rise in single-parent households in Portugal. In that year, there were 579,971 households consisting of single mothers or fathers and their children, marking a 20.7% increase compared to 2011. This increase is attributed, in part, to rising divorce and separation rates. Additionally, Portugal has gained international recognition as an attractive destination for both living and working, with a growing number of foreigners choosing to reside in the country since 2015.

Manuel Reis Campos, president of AICCOPN (the association representing the construction industry), explains that the past decade has witnessed a deterioration in the condition of the housing stock, decreased government investment in housing, and a slowdown in private sector investment. During this period, an annual average of approximately 15,000 housing units were licensed, a stark contrast to the 68,000 recorded in the previous decade. According to Reis Campos, the shortage of housing supply is no longer a temporary issue but rather a long-term structural problem.