Housing continues to consume a large share of household income in Portugal, reflecting the difficulties many families face when trying to rent or buy a home. Only a few cities in the country show lower levels of pressure, demonstrating that the national real estate market remains challenging and in need of solutions—particularly in terms of increasing supply. Specifically, the financial effort required to rent a home in Portugal remains high, standing at 83% in the third quarter of 2025. For home purchases, the national effort rate was 70%, according to an analysis by idealista, the leading marketplace in Southern Europe.

Effort rate for renting rises in Funchal

Among the 20 cities analyzed, families face the greatest difficulty renting a home in Funchal, with an effort rate of 100%, followed by Faro (93%) and Lisbon (83%).

Other cities that recorded significant increases include Porto (69%), Setúbal (64%), Viana do Castelo (58%), Aveiro (55%), Braga (54%), Évora (53%), Santarém (53%), Ponta Delgada (52%), Leiria (51%), Coimbra (45%), Viseu (45%), and Vila Real (42%).

On the other hand, rents weigh less on household income in Bragança (39%), Beja (37%), and Castelo Branco (37%). The only cities with rates close to or below the recommended limit of 33% are Portalegre (34%) and Guarda (32%).

Renting a home: effort rate in major cities

Effort rate for paying rent (%)*

City Effort rate Q3 2025
Funchal 100%
Setúbal 64%
Vila Real 42%
Santarém 53%
Faro 93%
Castelo Branco 37%
Évora 53%
Coimbra 45%
Viana do Castelo 58%
Aveiro 55%
Leiria 51%
Beja 37%
Viseu 45%
Bragança 39%
Lisbon 83%
Braga 54%
Portalegre 34%
Guarda 32%
Porto 69%
Ponta Delgada 52%

* The effort rate is the annual percentage of the average household’s net income allocated to paying rent.
Source: idealista — Created with Datawrapper

Buying a home: less pressure in the North and Alentejo

The share of household income allocated to buying a home through a mortgage increased in several district capitals in the third quarter of 2025.

In Q3 2025, the cities with the highest effort rates for home purchases were Lisbon (111%), Funchal (99%), and Faro (93%), followed by Aveiro (76%), Porto (69%), Ponta Delgada (62%), Viana do Castelo (60%), Braga (58%), Setúbal (58%), Coimbra (53%), Leiria (52%), Viseu (47%), Évora (46%), and Santarém (38%).

Among the cities where it is possible to buy a home with less financial effort—below the recommended threshold of 33%—stand out Guarda (18%), Castelo Branco (18%), Portalegre (20%), Bragança (21%), Beja (27%), and Vila Real (28%).

Buying a home: effort rate in major cities

Effort rate for paying the mortgage (%)*

City Effort rate Q3 2025
Coimbra 53%
Viana do Castelo 60%
Aveiro 76%
Beja 27%
Setúbal 58%
Lisbon 111%
Funchal 99%
Santarém 38%
Leiria 52%
Viseu 47%
Guarda 18%
Castelo Branco 18%
Vila Real 28%
Évora 46%
Porto 69%
Braga 58%
Bragança 21%
Portalegre 20%
Faro 93%
Ponta Delgada 62%

* The effort rate is calculated as the annual percentage of the household’s net income allocated to paying a mortgage loan with average characteristics in terms of duration and interest rate.
Source: idealista — Created with Datawrapper

Methodology

idealista analyzed the evolution of effort rates between the second and third quarters of 2025, both in the home purchase and rental markets.

The effort rate is an indicator that measures the impact of housing costs on a household’s purchasing power.

  • In the rental market, the effort rate is calculated as the annual percentage of the average household’s net income dedicated to paying rent. Rental values are obtained directly from idealista’s data source, which provides prices for each city. Household income data is provided by the National Statistics Institute (INE).

  • In the home purchase market, the effort rate is calculated as the annual percentage of the household’s net income allocated to paying a mortgage loan with average duration and interest rate characteristics. Recently, due to the decrease in interest rates, the calculation has been updated based on data published by the European Central Bank (ECB).