The latest figures point to a squeeze in the shared housing market at a particularly difficult time of year, as students prepare for the start of the academic year and compete with young professionals and other renters for limited accommodation.

According to data reported by Executive Digest, the supply of rooms available to rent has fallen by more than 25%, while asking rents have continued to climb.

The figures add an additional layer to Portugal’s housing problem. Renting a room has traditionally been a cheaper alternative for people unable or unwilling to afford an entire apartment. Still, that gap is narrowing as demand for shared accommodation increases.

Shared housing is no longer just for students

Although university students remain a major part of the market, room rentals have increasingly become an option for young professionals, people moving to a new city for work, and those who cannot afford a property on their own.

Previous data from property platform idealista illustrates how quickly the market has changed. In 2024, the median asking rent for a room across Portugal was around €450 per month, with Lisbon already hitting roughly €550. At the time, the supply of rooms had actually increased substantially, rising 57% year-on-year.

Two years later, the reported fall in availability suggests prospective tenants are now facing a very different market.

The pressure is particularly noticeable in Portugal’s largest cities and university centres, where the annual late-summer search for accommodation adds another wave of demand.

A difficult start for students

The timing is significant. Thousands of students will be looking for accommodation ahead of the new university year, and a room costing more than €500 a month can represent a substantial portion of a family’s monthly budget before food, transport and other expenses are taken into account.

It also means sharing a property is no longer necessarily the inexpensive stepping stone it once was for younger renters.

Prices vary considerably depending on location. Nonetheless, there are still available rooms outside the most sought-after areas. But with fewer properties being advertised and demand set to increase as September approaches, those beginning their search may have fewer options and face considerably higher costs than students did only a few years ago.