In the second quarter of 2026, the affordability ratio required to rent a home in Portugal remained at 82 percent, an analysis by idealista shows, while the national affordability ratio settled at 76 percent for home purchases.

Among the 20 cities analysed, Faro tops the list with a cost burden of 101 percent of household income, Publituris reports.

The next cities on the list are Funchal at 99 percent and Lisbon at 80 percent of household income.

Other cities with high levels are Porto (69 percent), Setúbal (66 percent), Ponta Delgada (57 percent), Aveiro (54 percent), Évora (51 percent), Braga (51 percent), Santarém (51 percent), Viana do Castelo (49 percent), Leiria (48 percent), Coimbra (44 percent), and Viseu (43 percent).

The only city with a cost burden closest to the recommended 33 percent limit is Portalegre in the Alentejo region.

Affordability for home buyers

Buying a home in Portugal continues to require a very high percentage of household income. Among the 20 cities analysed by idealista, the city of Funchal represents the greatest financial burden, with an affordability ratio of 115 percent, followed by Lisbon at 99 percent and Faro at 84 percent.

High levels are also seen in Porto (82 percent), Aveiro (72 percent), Setúbal (58 percent), Braga (58 percent), Ponta Delgada (58 percent), Viana do Castelo (56 percent), Leiria (54 percent), Coimbra (49 percent), Viseu (48 percent), Évora (48 percent), and Santarém (44 percent).

Only six district capitals show affordability ratios at or below the recommended limit of 33 percent: Guarda (20 percent), Portalegre (23 percent), Castelo Branco (23 percent), Bragança (27 percent), Beja (30 percent), and Vila Real (31 percent).