The housing market in Portugal is experiencing a shortage of properties, especially at affordable prices. The supply of houses for sale in the country has fallen 26% since the all-time high reached at the end of 2020, as revealed by the most recent data analysed by idealista through the second quarter of 2025.

The reduction in the supply of homes available for purchase compared to the maximum recorded stock was observed throughout the country, although with distinct variations from state to state. Leiria and Coimbra recorded the largest declines in housing stock, with decreases of 52% and 51%, respectively, compared to the highs recorded in the fourth quarter of 2018 in both districts.

Lisbon has seen a 39% drop in the number of homes for sale since the last quarter of 2020, and Faro has seen a 38% drop in supply compared to the summer of 2020. On the island of São Miguel in the Azores, housing inventory has decreased by 35% since the second quarter of 2021, while Madeira Island has seen 32% fewer homes available for sale since the first quarter of 2021. In Santarém, the decline has been 31% since the third quarter of 2020. In Setúbal, the supply of homes for sale has fallen by 23% compared to the peak observed in the spring of 2024.

In Porto, the district that includes the country's second-largest city, the supply of homes for sale has fallen by 22% since the second quarter of 2021, when it reached a record high. And in Aveiro, the supply drop was 21% compared to the peak observed in the second quarter of 2019. Since then, the districts have seen inventory reductions of less than 20% compared to their respective records reached between 2018 and 2024.

Portalegre recorded the most moderate decline in housing inventory in the entire country: -7% compared to the last quarter of 2023.