Portuguese Families Spend 82% of Salaries on Rent, 76% on Mortgages

What happened

According to Essential Business, the affordability ratio for renting a home in Portugal remained high in the second quarter of 2026, standing at 82% of a family's salary. For home purchases, the ratio was 76% of salaries. This means that the average Portuguese family must dedicate a large majority of their income to housing costs, with the burden especially acute in major cities like Lisbon, Faro, and Funchal.

Why it matters for international residents

International residents living in or planning to move to Portugal will be directly affected by these high housing costs. Renting or buying a home can consume a substantial share of income, impacting overall living expenses and financial planning. This situation may influence decisions on where to live, salary negotiations, or whether to consider alternative regions with lower costs. Understanding these affordability challenges is crucial for anyone relocating to Portugal.

What to do next

International residents should carefully evaluate their housing budget when considering Portugal. It is advisable to research different areas, explore a variety of housing options, and account for housing costs when negotiating employment packages. For accurate and updated information, consult official housing data, local real estate agencies, or expat support services.

Sources

• Essential Business: Portuguese families spend 82% of salaries on rent and 76% on mortgages