Housing
BdP study indicates housing crisis cannot be solved with 'demand-side' policies
A study published by Banco de Portugal on Thursday, 15 October 2026 indicates that demand shocks drive up house prices and rents, with prices rising by about 0.69% for every 1% increase in demand compared to a 0.37% rise in rents. The author, João Amador, concludes that housing affordability policies must focus on increasing supply responsiveness, particularly in municipalities with constrained supply like Lisbon and Porto.
Why it matters
This central bank study signals that future housing policies are likely to focus on boosting supply rather than stimulating demand, though it introduces no immediate rule changes for tenants or buyers.Diário de NotíciasRead original ↗
