The Left’s Illusion on Housing in Portugal

Portugal is facing a real housing crisis. Prices for both buying and renting homes have reached historical highs, making access to decent housing increasingly out of reach for many. But the public debate around this issue has been hijacked by ideological populism, particularly from the left, which refuses to accept the basic rules of economics and instead promotes dangerous myths and failed solutions.
Left-wing parties in Portugal, especially those associated with the governments formed after the Carnation Revolution of 1974 and more recently under António Costa's "geringonça", have consistently pushed for state intervention as the panacea for the housing crisis. They insist that housing is a right that must be guaranteed at any cost—even if that means distorting the market and punishing those who actually build and offer homes. But this utopian view is not only impractical—it’s harmful.
Let’s start with the facts: high prices are not caused by evil landlords or greedy developers. Prices reflect a fundamental imbalance—too much demand, not enough supply. That’s not ideology, that’s economics 101. The natural response should be to increase supply: make it easier and faster to build, simplify licensing, unlock urban land, and encourage more private owners to put their properties on the market.
Instead, the left pushes for rent controls, price caps, and more subsidies—measures that have consistently failed in cities like Berlin, San Francisco, and Stockholm. These policies may sound “social” and “just” in theory, but in practice, they scare off investment, reduce housing availability, and drive the market underground. Who would rent out a property if the government limits your income, imposes heavy taxes, and offers little protection against tenants who don’t pay?
This is not about capitalism or ideology—this is about basic human behavior. If a family inherits a house and considers renting it, but is faced with excessive regulation and financial insecurity, they simply won’t do it. When incentives vanish, so does supply.
Moreover, the Portuguese Constitution does recognize housing as a right—but a programmatic one, not an absolute guarantee. The State is encouraged to facilitate access, not to provide housing unconditionally. Still, left-wing rhetoric has twisted this principle into an excuse for ever-growing public intervention, often disconnected from practical realities.
Rather than building more homes, leftist policies have focused on short-term fixes like subsidizing rent. While these may help in the immediate term, they actually increase demand without increasing supply—fueling the very inflation they claim to fight. Worse, such programs are often shaped by political goals, not technical feasibility.
In this narrative, real estate developers and landlords are painted as enemies of the people. But this could not be further from the truth. They are not the cause of the crisis—they are essential to the solution. With the right incentives, they can build, renovate, and offer the housing Portugal so desperately needs.
The solution isn’t more control—it’s more freedom. Stability in regulations, clear and fair taxation, faster licensing processes, and restoring investor confidence are key. We need to stop pretending that price controls can replace real housing stock. As harsh as it may sound, only more homes will solve the lack of homes.
The time has come to end the illusions. If we want a real solution to the housing crisis, we must trust in the power of functioning markets and the people willing to invest in them. Ideological promises have failed us before. It’s time for rationality, responsibility, and long-term thinking.