Household Effort Rate to Rent a Home in Portugal Rises to 83%
The financial burden required for families to rent a home in Portugal has increased, with the national average 'taxa de esforço' (effort rate) reaching 83% in the second quarter of 2025. This figure represents a one-percentage-point rise from the 82% recorded in the corresponding period of 2024. The data, compiled and released by the real estate portal Idealista, also shows that the effort rate for purchasing a home has remained stable at 71% year-over-year.
The analysis, which measures the percentage of household income dedicated to housing costs, was based on rental prices from Idealista's platform and average income data from the National Statistics Institute (INE). For home purchases, the calculation used average mortgage payments based on interest rates from the European Central Bank. The findings indicate that rental affordability has worsened, while the cost of purchasing has stabilized at a high level.
A geographic breakdown of the data reveals significant regional disparities in the rental market. The city of Faro experienced the most substantial increase in its rental effort rate, surging from 70% in the second quarter of 2024 to 90% in 2025. Following Faro, the highest effort rates for renting were found in Funchal (89%), Lisbon (83%), and Ponta Delgada (75%). The city of Porto recorded an effort rate of 71%. The report noted that every district capital in the country presented an effort rate for renting that exceeded the generally recommended maximum threshold of 33%.
While some cities saw increases, others registered a decrease in the rental effort rate over the past year. Lisbon, despite its high rate, saw a reduction of three percentage points. The most significant decreases were observed in Beja (-8 p.p.) and Santarém (-7 p.p.). In the home purchase market, the effort rate in Lisbon stands at 108%, indicating that average mortgage costs exceed the average household income. Faro and Funchal both recorded purchase effort rates of 96%. In contrast, six cities, including Castelo Branco (17%) and Guarda (17%), offer purchase effort rates below the 33% benchmark.
Industry experts from organizations such as the Association of Real Estate Professionals and Agents of Portugal (APEMIP) have previously commented on such trends, often citing a structural imbalance between supply and demand as a primary driver of high housing costs. The data from Idealista provides a quantitative look at the state of housing affordability, a topic of ongoing public and governmental concern. The report itself did not contain direct commentary from market analysts but presented the statistical findings for public information.
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