A delegation of European Parliament members concluded a fact-finding visit to Lisbon last week to assess the city’s housing affordability crisis. The visit, which took place from February 20 to 24, aimed to gather information on the current state of housing in Lisbon and its impact on residents.
According to Ana Gomes, a Portuguese MEP who participated in the visit, “there was a sense of unfolding crisis when we spoke to local residents and experts.” The delegation met with local authorities, tenant associations, and real estate experts to discuss the challenges faced by residents in accessing affordable housing.
Lisbon has experienced a significant increase in housing prices over the past few years, with the average price per square meter rising by 15% in 2022 alone. This has led to a shortage of affordable housing options, displacing long-time residents and low-income families.
“We are concerned about the impact of gentrification on local communities,” said Gomes. “The city’s charm and character are being lost as small businesses and family-owned shops are forced to close due to rising rents and property prices.”
Some key facts about the housing situation in Lisbon include:
- The average rent for a one-bedroom apartment in the city center is now over €800 per month.
- Over 30% of residents spend more than 40% of their income on housing costs.
- The city’s housing stock is predominantly owned by private investors, with over 50% of properties held by non-resident owners.
As the delegation finalized its report, residents and activists in Lisbon are eagerly awaiting the EU’s response to the housing crisis. The city’s mayor, Carlos Moedas, has announced plans to increase the supply of affordable housing by 20% over the next two years. However, critics argue that more needs to be done to address the root causes of the crisis, including speculative buying and the lack of rent control.
The European Parliament is expected to discuss the delegation’s findings and recommendations in the coming weeks, with a potential vote on a resolution to address the housing affordability crisis in Lisbon and other European cities.
The situation in Lisbon raises important questions about the impact of housing affordability on urban communities and the need for effective policies to address this issue. As the city struggles to balance its growth with the needs of its residents, it remains to be seen what concrete actions will be taken to address the crisis.
The cost of inaction is already being felt, with many residents forced to seek housing outside the city or rely on precarious and expensive short-term rentals. The economic implications are also significant, with the city’s housing market now accounting for over 25% of its GDP.
What happens next will depend on the EU’s response to the crisis and the city’s ability to implement effective solutions. For now, residents of Lisbon can only watch and wait as their city continues to evolve and struggle with the challenges of housing affordability.