Access to housing in Portugal, especially among young people, has deteriorated over the past 20 years. If 70% of young people owned their own homes at the beginning of the first decade of the twenty-first century, today this percentage has become only 40%. Data are taken from the Bank of Portugal (BdP).
BdP data reveal that around 2001, around 70% of households aged 25 to 34 owned a home – thus concluding that “the 1967-1976 generation is the generation in which households became owners earlier”. But in 2021, only 40% of households aged 25 to 34 owned a home (those born between 1987 and 1996).
“In more recent generations, the proportion of young owners has declined significantly,” the regulator concludes. In fact, the proportion of owners under the age of 25 fell to less than 35% in generations born after 1986.
But what justifies this decline? “Younger families were particularly affected by the high unemployment rate in the period 2000-2014, as a result of weak economic growth in the early 2000s and the sovereign debt crisis. In families where the representative is under 35 years of age, the share of owners in 2021 fell to 1981 level.” In addition, there was also greater demand for rental homes from young people.
What also became clear is that the latest generations are burdened with housing loans before the age of 35, which is something we did not notice in the generations born between 1947 and 1966.
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