Portugal has one the highest numbers of houses per inhabitant in the world. Over 40 per inhabitant. There are 700,000 empty homes in Portugal, not counting airbnbs and second homes. A country of 10,000,000 people.
From 2020 to 2023 there was an increase of 400,000,000 euros in international investment in the Portuguese real estate market. It literally doubles in 3 years.
There is a high number of houses that are kept as investments (empty, second houses, airbnbs etc.). This keeps the market hostage to an international investor class, who in every way but literally have infinite money.
This problem will keep getting worse and worse as long as the government doesn’t do something to fix the root of the issue.
Housing should not be a capital market to be speculated on. There should be no investors in housing.
Things people need to survive can’t be subject to market forces.
Homelessness and lack of housing affordability is exclusively an issue of neoliberal capitalism and the infection of every facet of our existence with “the market”.
I don’t disagree with the sentiment of your comment, but I feel it lacks some nuance.
First of all, where are those empty houses located? A lot of the pressure is in larger urban areas: Lisboa, Porto, Braga, Coimbra. If the houses are away from an urban centre, they might as well not exist.
Portugal also has a huge emigrant community, and it’s common for emigrants to have a house back in the home country, usually in more rural areas, but not always. These houses are a little retirement plan, and tend to stay unoccupied for months or years, only used when that owner goes to Portugal on holidays, or when/if they decide to return.While “nuance” can indeed be good, it can’t be based on vibes.
If we analyse the data, we know that more than 10% of the active real estate market is subject to international investment and speculation. And the majority of the active real estate market is in major urban centres (with a very big portion in Lisbon alone).
Amazon, when it was first starting out as a book-seller, made a realisation that if they controlled only 6% of a book’s sales they controlled 100% of the price.
If investors control over 6% of the active real estate market, they control the prices. International investors have much more capital than local Portuguese. Investors need prices to keep rising.
The outcome of the current housing crisis is not due to some Portuguese people owning one or two houses. It’s due to international investors buying properties to rent out on Airbnb and expecting their investment to keep rising double percentage digits every year. They might control only around 10% of the market, but they can control the prices with this.
Also, there are enough houses. Portugal doesn’t need to build more houses to solve the housing crisis. Not that building more houses is bad. But it’s not the best and cheapest solution.
The state can eminent-domain empty houses or force them to be rented out long-term. Ban Airbnb. Create laws that enshrine housing as a human right and not a capital market.
But I also support the state building more public housing. That is always good. Public housing ran as a housing co-op is perfect as well. But the state can just buy empty ones and put them under co-ops as well, and that would be likely be cheaper.
Good! More people around the world should protest the rampant price gouging by the land-owning class.
Caused by wealthy foreign migrants or are there other factors? For some reason I’ve heard a lot of North Americans talking about moving to Portugal.
It is probably a combination of wealthy foreign migrants and overtourism.
Portugal had been pushing visas for remote workers around Covid similar to how a lot of poorer cities and states have been pushing for remote workers to move in. Apparently it has been very successful, causing people to get pushed of Lisbon’s city center.
Portugal has also been selling itself as a way to get a cheap European vacation in the USA, which has also helped. I know United Airlines opened up a lot of flights from Newark to various Portuguese cities. Porto has become swamped with AirBnB’s as the city shifts to a tourism economy.
Given that Portugal has economic statistics similar to Eastern Europe, I can see this pushing out Portuguese from their cities and into Newark.
I was surprised to learn Portugal was so poor. I’d be curious to know the history there. They were a powerhouse during the colonial era, so it’s interesting that they didn’t end up wealthy like most other colonial powers.
This country isn’t poor. Far from it. What there is an ingrained mentality that we can’t do any better and lately this was topped with if someone has something or does something they are instantly villains, regardless of they are honest and decent individuals.
We have old money, really old money. Some nouveau riche and a few shit for brains top CEOs that open their mouths to spout idiocy.
Paired with a mentality of “good enough is not enough” makes the average portuguese complain the world is against them and anywhere but here is better. This results in massive waves of highly qualified professionals leaving the country that needs that same people to grow.
Oh, and those who stay? “stupid”, “crazy” and “idiot” are common terms to designate them, by those who leave and even more by those who will never do anything but complain.
A lot of Europe’s wealth got earned during the Industrial Revolution. Portugal didn’t really participate as much as other nations did.
This country is ripe for a rise in Marxist thought if played right. Good luck, Portugal.
