A harsh warning from the new president of DECO for the housing crisis in Portugal: “A picture of disaster”

A harsh warning from the new president of DECO for the housing crisis in Portugal: “A picture of disaster”

The scale of the housing crisis in Portugal has been described as a problem that requires extraordinary intervention by João Nabais, the new president of DECO, one of the country's most important consumer organizations. According to Nabais, housing is now the number one issue facing consumers in Portugal and the current situation requires solutions beyond normal market measures. idealista

Nabais, who took over the management of DECO on September 9, evaluated the situation in Portugal as one of the most severe housing problems in Europe in an interview with Idealista News.

Low wages exacerbate housing crisis

The problem in Portugal is not just rising house prices.

Nabais points out that the fact that the income level in the country is lower than many countries in Europe magnifies the impact of the housing crisis.

The result is especially evident for young people, students, low- and middle-income workers, and families in need of rental housing.

According to the President of DECO, the market's failure to produce sufficient housing at affordable prices means that people are unable to leave their family home or face an increasingly heavy rent burden. idealista

DECO wants discussion of moratorium for those unable to pay rent

One of Nabais' most notable proposals is an extraordinary mechanism for people at risk of eviction due to rent arrears. creation.

Citing the practices during the Covid-19 period as an example, DECO President suggests considering moratorium or credit mechanisms that can temporarily stop evictions under certain conditions for tenants who have difficulty paying.

However, he emphasizes that this should not be applied to the detriment of the landlord.

The proposed approach is based on the idea that the state or the financing mechanism to be created will save time for the tenant in temporary payment difficulties while protecting the rental income of the landlord.

At this stage, it should be underlined that the model in question is not a state program in force. We are talking about the DECO President's proposal for public policy. idealista

Call for more social and accessible housing

According to DECO, one of the key elements of the long-term solution is to significantly increase the supply of social housing.

Nabais argues that the central government and municipalities should intervene in land, licensing and social housing production in a coordinated manner.

He sees accelerating license and project approval processes as part of the solution, rather than preventing private investments.

This point reveals one of the main contradictions of Portugal's housing debate: on the one hand, the need to produce more private housing, and on the other, the rise of market prices far beyond the levels accessible to low- and middle-income households.

Tenants can use today rights have not changed

DECO President's moratorium proposal may start a new debate, but it does not eliminate tenants' existing obligations.

Therefore, it is not possible to rely on this explanation to stop or delay the payment of rent.

Tenants with payment difficulties need to check available rental subsidies and social supports that may apply to their situation.

Particularly for foreigners who have recently settled in Portugal, it is important that the rental agreement is notified to Finanças, payment records are kept and important correspondence with the landlord is documented in case of possible disputes.

Housing will be one of the biggest social problems of 2026

The fact that DECO's new management has identified housing as the most important problem of consumers, even before healthcare, shows that the issue is no longer seen as limited to the real estate market.

Housing costs directly affect household budgets, young people's separation from their families, employees' relocation to big cities, and the cost of settling in for foreigners coming to Portugal.

It is not yet clear whether Nabais' suggestions will translate into government policies. However, it is clear that DECO's new management will demand stronger interventions on housing in the coming period.

Resources

Idealista News — “O problema da habitação está num quadro de catástrofe em Portugal” — Martim Galvão, Gonçalo Lopes — September 9 2026

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