If you feel that buying a home in Portugal is getting harder and harder, know that this feeling isn’t just a hunch.
The numbers show exactly why.
Over the past 10 years, housing prices in Portugal have risen 169%, while the average gross wage for workers has grown by only 41.5%. In other words, home prices have risen four times faster than wages.
This imbalance helps explain why so many families feel that they are working harder and earning more than they did a few years ago, yet still struggle to make a down payment on a home or secure affordable financing.
The housing market has changed faster than incomes
For many years, it was common for a family to be able to buy a home on a single income.
Today, in most cases, two incomes, a good ability to save, and rigorous financial planning are necessary.
It’s not for lack of effort.
It’s because the housing market has evolved at a much faster pace than wage growth.
Those who put off buying for several years often end up facing an even more difficult situation: a property that costs €250,000 today may cost significantly more in a few years, while wage increases are unlikely to keep pace with that appreciation.
Household expenses have also changed
There is another factor that weighs heavily on the budgets of modern families: fixed expenses.
Our grandparents had electricity, water, and a telephone.
Today, a family incurs monthly expenses such as:
High-speed internet;
Two or more cell phones;
Streaming platforms;
Computers and tablets;
Insurance;
Digital subscriptions;
Online shopping;
Paid apps;
Frequent replacement of electronic devices.
Individually, many of these costs seem small.
But when added up over the course of a month, they often amount to several hundred euros that are no longer available for savings or a down payment on a home.
We live in a society that encourages consumption
Twenty or thirty years ago, people only bought things when necessary.
Today, we are constantly exposed to personalized advertising, promotional campaigns, one-click shopping, and instant credit.
This doesn’t mean that all these expenses are unnecessary. Many are part of modern life and are even essential for work or study.
But it’s undeniable that the ease of consumption makes it harder to save.
So did our grandparents have an easier life?
Not everything was better.
Previous generations faced economic crises, less access to higher education, physically more demanding jobs, and far less comfort than we have today.
However, when we look exclusively at the relationship between home prices and wages, the data is clear: buying a home has become significantly more difficult.
That is precisely why so many people put off this goal, stay in the rental market longer, or believe they’ll never be able to buy a home.
Waiting can end up costing more
It’s natural to want to wait for the “perfect moment.”
But the reality of the real estate market shows that, often, those who wait too long end up paying more.
Every situation is different, of course. Buying today isn’t always the right decision.
However, knowing your financial capacity and understanding what you need to do to buy in one, two, or five years can make all the difference.
Having a plan is much better than postponing a decision due to a lack of information.
Buying a home in Portugal is still possible
Despite the challenges, thousands of families continue to buy homes every year.
The difference often lies in planning.
Knowing how much you can invest, what your monthly payment will be, how much you need for a down payment, and what financial assistance is available allows you to make decisions with much greater confidence.
Buying a home remains one of the most solid ways to build wealth and secure your family’s future.
Want to know if you’re ready to buy a home?
If you’re thinking about buying a home in Portugal but aren’t sure if now is the right time, I can help you assess your situation.
Even if you’re not quite ready to buy yet, we can develop a realistic plan, identify what you need to improve, and set a timeline to achieve that goal.
Often, a conversation lasting just a few minutes is enough to turn a distant dream into a concrete plan.
Get in touch with me. I’d be happy to help you figure out the next step toward buying your home safely and confidently.
If there’s any topic related to the real estate market or living in Portugal that you’d like me to cover, please send me your suggestion. I’d be happy to create content that answers your questions.
Anah Cremonese
Your real estate consultant.
+351 910 747 000