Portugal's wooden homes offer affordable alternative amid housing crisis

In Portugal, modern wooden houses produced by companies such as Habimóvel are being promoted as a faster, energy‑efficient and cost‑predictable alternative to traditional construction. Builders cite industrial processes that shorten build time and deliver high‑quality finishes, challenging longstanding skepticism about prefabricated timber dwellings.

At the same time, Portugal faces a severe housing‑price surge, with land, labour and material costs rising sharply. Factors cited include the aftermath of the sub‑prime crisis, tourism‑driven conversion of homes to short‑term rentals, and a steady influx of immigrants, all of which have pushed house prices far above average salaries and limited home‑ownership prospects for younger families.