Data collected and analysed by idealista/data shows that the supply of homes available for long-term rent in Portugal fell by 22 percent in the second quarter of 2026 compared with the same period last year, highlighting the continued shortage of rental housing despite government plans to reform the sector.

Compared with the first quarter of 2026, however, rental supply remained broadly stable, slipping just 0.3 percent to 40,716 advertised properties nationwide.

The figures come as the government prepares a package of rental reforms aimed at addressing issues surrounding evictions and both new and existing tenancy contracts.

The measures are still awaiting parliamentary approval.

Sharpest declines in major cities

The reduction in rental supply was not evenly spread across the country.

Among the 20 district capitals and autonomous regions analysed, only six recorded fewer homes available for rent than a year earlier. Coimbra experienced the largest drop, with rental stock falling 58 percent, followed by Porto at 52 percent and Lisbon at 27 percent. Smaller declines were recorded in Leiria, Portalegre and Braga, while supply remained stable in Aveiro and Beja.

By contrast, rental availability increased in 12 cities. Funchal recorded the largest rise at 58 percent, followed by Viana do Castelo at 57 percent, Vila Real at 50 percent and Ponta Delgada at 44 percent. Other cities posting increases included Viseu, Bragança, Faro, Évora, Santarém, Castelo Branco, Guarda and Setúbal.

Ruben Marques, spokesperson for idealista, said percentage increases in smaller markets should be interpreted with caution.

“When we talk about markets with growth exceeding 50 percent, it’s important to understand what’s behind those numbers. In cities with a low supply of rental properties, a 50 percent increase may only represent a few dozen additional properties, a volume that is not enough to substantially alter the conditions of the local market,” he said.

Pressure concentrated in urban centres

According to Marques, the country’s rental challenges remain centred on Portugal’s largest cities.

“The real problem with renting in Portugal is concentrated in large urban centres, where supply continues to fall and the pressure on families is more intense,” he said.

At district level, Coimbra, Porto and Lisbon also recorded the steepest annual declines in rental housing supply, with available stock falling 49 percent, 42 percent and 20 percent, respectively. Setúbal, Leiria and Aveiro also posted decreases.

Meanwhile, 14 of the 20 districts and islands analysed registered annual growth in rental supply. Beja recorded the largest increase at 65 percent, followed by Madeira at 50 percent, Bragança at 44 percent, Portalegre at 41 percent and São Miguel at 40 percent. Increases were also recorded in Viana do Castelo, Évora, Guarda, Vila Real, Viseu, Faro, Castelo Branco, Braga and Santarém.