Portugal faces surge in solo households and rising housing costs

A study released by the Observatorio Social of Fundació la Caixa shows that Portugal’s one‑person households grew 53 % between 1991 and 2022, while families of five or more fell 70 %. The average household size fell from 3.1 to 2.5 people, and about 85 % of the increase in total households is due to this shrinkage. Drivers include an ageing population, lower birth rates, higher separation/divorce rates and young adults staying longer at home because of housing‑price pressures.

A parallel analysis of the Portuguese housing market finds that renting a studio now requires a higher net annual income than buying one. Nationwide, a solo renter needs roughly €34,800 a year, compared with €33,680 to afford a mortgage on a median €225,000 studio. In Lisbon the gap widens: €42,000 needed to rent a T0 versus €49,400 to buy. Similar pressures exist in Funchal and other tourist‑driven cities, while interior towns remain comparatively affordable but with limited supply. The combination of demographic change and tight housing supply is prompting calls for policy responses to support older adults and lower‑income singles.