Portugal's Housing Crisis Hits Migrants Hard, New Policies Raise Concerns

Portugal's housing crisis has severely impacted migrants, with nearly 20% of non-EU residents living in overcrowded conditions. This situation highlights the growing challenges faced by newcomers in one of western Europe's poorest nations.

Andreia Costa, a 50-year-old carpenter from Brazil, exemplifies the struggles many migrants encounter. Arriving in Portugal in 2022 with hopes for a better life, she found herself priced out of Lisbon's rental market within months. Costa resorted to living in a tent on the city's outskirts, joining other migrants and locals unable to afford accommodation.

The housing crisis stems from a chronic shortage of affordable homes, exacerbated by an influx of wealthy foreigners attracted by residency rights linked to property investment and tax incentives. Additionally, a tourism boom has led to a surge in short-term holiday rentals, further straining the housing market.

Since 2015, Lisbon has seen rents skyrocket by 94% and house prices surge by 186%, according to housing data specialists Confidencial Imobiliario. This dramatic increase has outpaced wage growth, making housing increasingly unaffordable for many residents, particularly migrants who often work in precarious jobs with lower salaries.

Marina Carreiras, a researcher, notes that migrants frequently face discrimination in accessing housing and lack information on available support. Even Portuguese-speaking Brazilians encounter bias due to their accents, with some rental notices explicitly stating they don't rent to Brazilians.

The Migration Observatory (OM) reports that 19% of non-EU migrants in Portugal live in overcrowded accommodations, compared to 8% of Portuguese nationals. People from countries like Nepal and Bangladesh are particularly affected.

Catarina Reis de Oliveira, OM Director, explains:

In June 2024, Portugal's center-right government announced new migration policies that may further impact vulnerable migrants. These changes include eliminating the "manifestation of interest" mechanism, which previously allowed non-EU migrants without employment contracts to request residency after paying social security for a year.

While the government aims to address the backlog of 400,000 pending residency cases, experts warn that increased insecurity about legal status could leave migrants even more vulnerable in the housing market.

As Portugal grapples with its housing crisis, calls for rent controls, increased social housing, and the elimination of barriers such as guarantor requirements and advance payments are growing louder. The government's plan to adapt its golden visa scheme to encourage investment in affordable housing for locals and migrants may offer some relief, but the effectiveness of these measures remains to be seen.

For migrants like Andreia Costa, who now lives in a small caravan, the dream of finding stable, affordable housing persists. Her experience underscores the urgent need for comprehensive solutions to Portugal's housing crisis, particularly for its most vulnerable residents.