Housing: houses do not appear by decree

Portugal faces a worsening housing crisis due to a long-standing imbalance between housing supply and demand. For nearly two decades, the country has built fewer homes than needed, exacerbated by policies favoring urban rehabilitation without addressing the need for new housing. The majority of housing is privately owned, making it essential to create incentives for investment. While there are calls for more affordable housing, the financial realities of construction costs are often overlooked. Local authorities must adapt planning tools to current needs, and successful initiatives, like Porto's affordable rental model, show potential solutions. Addressing this crisis requires collaboration, flexibility, and difficult choices to break the cycle of scarcity and rising prices.