Portugal’s rental housing supply crashes 22% as major cities bear the brunt

Portugal’s long-term rental housing market is tightening sharply, with supply falling 22% in the second quarter of 2026 compared to the same period last year, according to data from idealista/data. The decline underscores a deepening shortage that continues to pressure families, particularly in large urban centres where supply is shrinking fastest.

Coimbra recorded the steepest drop among district capitals, with available rental stock plummeting 58%, followed by Porto at 52% and Lisbon at 27%. Smaller declines were seen in Leiria, Portalegre, and Braga, while supply remained stable in Aveiro and Beja.

Meanwhile, 12 cities recorded increases, led by Funchal (58%), Viana do Castelo (57%), Vila Real (50%), and Ponta Delgada (44%). But Ruben Marques, spokesperson for idealista, urged caution when interpreting those figures. ‘In cities with low supply, a 50% increase may only represent a few dozen additional properties,’ he said, noting that the real problem remains concentrated in Portugal’s largest urban areas.

The data comes as the government prepares a package of rental reforms aimed at addressing evictions and tenancy contracts. Those measures have not yet been approved by parliament, leaving the sector in limbo as supply continues to shrink.

Article and image source: theportugalnews.com