Calls for a national plan to boost new home construction in Portugal

Portugal's housing shortage is traced to a steep drop in construction activity after 2011, while immigration and demographic shifts increased demand. Public investment in housing fell following the Troika bailout, and banks, despite abundant liquidity, limited credit to developers while encouraging low-interest mortgages, squeezing supply and inflating prices. Although a majority of residents own their homes, a large share are asset-rich but cash-poor, limiting their ability to move if prices fall.

Social unrest has emerged, but protest messages are diluted by unrelated political slogans. The author contends that a coordinated national construction strategy, similar to fiscal incentives used for other sectors, is essential to restore balance.