The number of young homeowners in Portugal has halved in 20 years

The percentage of young people under 25 who own their own home has fallen by around 50% over the past two generations.

Nearly more than a quarter of Portuguese citizens born after 1997 managed to buy their own home before the age of 25 and this has happened in the last few years.

In stark contrast to this, around 55% of those born between 1977 and 1986 were already homeowners by the time they reached the age of 25, having purchased their properties between the late 1990s and 2010.

Data released by Portugal's central bank on Wednesday reflect a real estate crisis in the usually low-income country. Real estate prices have risen sharply over the past 10 years, making home ownership unaffordable for Portuguese citizens, especially for the younger generation.

Factually, real estate prices have been rising since 2014, according to Eurostat data. The largest increase was recorded last year at 12.6%.

The country's central bank has also analyzed the home ownership situation in 2021 based on the latest available data.

Two years ago, 70% of families living in Portugal owned their main home, 22% rented, and 8% were in another situation - mostly freehold, such as a house provided by relatives.

The percentage of people who own the home they live in is higher in Portugal than the eurozone average of 62% according to central bank data. Differences in the social market for rental housing, massive reconstruction after World War II (a conflict that did not affect Portuguese territory) and few tax incentives for buying real estate in certain countries are the main reasons highlighted by the institute.