Portugal’s house price‑to‑income gap widens amid migration surge
📌 Key Highlights & Context
- Ratio rose 60% while incomes grew 64%
- Portugal ranks 5th in the EU for the increase
- Net migration grew from 250 k in 2021 to 371 k in 2022
Eurostat figures indicate that Portugal’s house price‑to‑income ratio increased by 60% between 2015 and 2025. Compared with a 64% rise in incomes over the same period, the gap widened sharply, placing Portugal fifth among EU members for the steepest increase.
According to O Jornal Económico, citing the Portuguese National Statistics Institute (INE), net migration between 2021 and 2024 exceeded 1.2 million people – 250 000 in 2021, 371 000 in 2022, 307 000 in 2023 and 216 000 in 2024. Although the government introduced immigration restrictions in 2024, the country still added over 200 000 newcomers that year.
These dynamics suggest that the housing‑affordability crisis did not start in 2021; the cumulative influx of migrants has amplified demand for homes. The 2025 spike, where the price‑to‑income ratio jumped another 12% in a single year, underscores that price growth is outpacing wage recovery and signals a need for policies that address both migration flows and housing supply.