The rise in housing prices is outpacing income levels.

According to a new study, housing prices in Portugal have outpaced income growth by 69% since 2015. Portugal ranks third in the world in terms of the difficulty of buying a home, according to the authors of an analysis of the markets in 56 countries.

A study by MoneyTransfers, based on a comparison of nominal housing prices and disposable income per capita, showed that in the second quarter of 2023, housing affordability in Portugal is among the most challenging in the world, with a ratio of 169%. This means that housing prices have increased 69% faster than income since 2015.

The situation is only worse in Turkey (with an index of 197%) and Iceland (173%).

"Portugal is facing a serious crisis in the real estate market, partly due to an increase in property purchases by foreigners, as well as a lack of affordable housing in construction," emphasizes a study by MoneyTransfers.

The same study also mentions countries where access to housing is more affordable, meaning where income levels are rising faster than housing prices. "On a global market scale, the average housing price has increased by 3.0% over the last 12 months up to the second quarter of 2023. And 54 out of 56 countries tracked by the index continue to see growth. However, this will not hinder access to housing in the most affordable markets in the world," the experts explain.

But in which country is it easiest to buy a house on a global level?

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