Lisbon housing costs equal 19 years of average salary, study finds

A Numbeo analysis shows that buying a home in Lisbon now requires about 18.7 times a household’s annual income – roughly 19 years of wages – the highest price‑to‑income ratio in Europe alongside Croatia’s coastal city of Split. The capital’s average apartment costs €6,763 per square metre, putting a typical 50‑square‑metre flat at around €338,000. Over the past decade Portuguese house prices have risen by almost 240 % while average wages grew only 59 %, widening the gap between earnings and housing costs.

The shortage of new homes exacerbates the crisis. Portugal builds about 25,000–30,000 dwellings a year, far short of the 45,000–50,000 homes estimated as needed, and reserves just 2 % of its housing stock for social housing, one of the lowest shares in Europe. The OECD’s 2026 economic survey classified Portugal among the nations with the poorest housing access in the developed world, citing regulatory barriers and a weak rental market. The pressure has sparked large‑scale protests, with the “Casa para Viver” movement drawing tens of thousands onto the streets.

Meanwhile, demand is shifting to municipalities where average asking prices stay below €308,488, such as Vale de Cambra (Aveiro) and the Azores, where price growth remains strong but remains more affordable than the major urban centres.