However, the option to buy a house requires savings of 32,585 euros, on average, according to an analysis published by idealista. This is because in order to get a mortgage, in the current context, you need to have a reserve fund to put down a deposit on the new house.

In Portugal, the median price to rent a two-bedroom apartment is 1,026 euros per month, while the monthly mortgage payment to purchase the same property will be 1,001 euros per month in the second quarter of 2024. In other words, renting a house represents a cost 21% higher than the monthly mortgage payment that would be required to purchase the same property. Even so, anyone who goes ahead with buying a house will need to have savings of 32,585 euros, on average, to make a down payment on the loan.

"This analysis quantifies the complex situation of families in relation to access to their own home. In most markets, families would be able to pay their mortgage repayments more easily than the monthly rent. However, they are often unable to take this step due to a lack of financial liquidity", comments Ruben Marques, spokesperson for idealista.

This is because "high rents, together with low wages, job instability and the high cost of living prevent many families from saving enough to buy a home and achieve a situation of greater stability and relief in their wallets. As the financial system is unlikely to relax its risk criteria, the only solution to improve access to housing seems to be the adoption of measures that allow an exponential increase in the supply of housing for rent and purchase, in order to reduce prices and generate a healthy real estate market", concludes Ruben Marques.


Where are the biggest differences?

When analysing the district capitals with representative samples, it is clear that it is in Santarém where paying a monthly rent (797 euros) is more expensive compared to paying the mortgage to the bank (429 euros), with a difference of 86%.

There are also eight other cities where renting a house is more expensive each month than paying the mortgage to the bank: Guarda (where rent is 75% more expensive), Castelo Branco (58%), Setúbal (23%), Évora (22%), Portalegre (21%), Bragança (4%), Viana do Castelo (2%) and Vila Real (2%).

On the other hand, in Faro the rent is lower than the bank payment, being 32% cheaper. Other cities where renting is more affordable than paying mortgages are Aveiro (-21%), Ponta Delgada (-13%), Lisbon (-12%), Viseu (-11%), Leiria (-11%), Funchal (-10%), Braga (-7%) and Coimbra (-2%). In Porto, the difference between paying rent or mortgages is minimal, at -0.4%.

When comparing districts and islands, the discrepancies between the costs of renting and the monthly mortgage payments become even more pronounced in Portugal. In Guarda, renting is twice as expensive as paying mortgages. Next is Portalegre (78% more expensive), Évora (75%), Beja (72%), Vila Real (60%), Castelo Branco (59%), Santarém (46%), Bragança (43%), Viseu (35%) and Coimbra (23%). Below the national median are Viana do Castelo (20%), Setúbal (15%), Lisbon (14%), Leiria (11%), the island of São Miguel (10%), Porto (6%) and Braga (5%).

In Faro, rent is 21% cheaper than the monthly payment, followed by the island of Madeira (-10%) and Aveiro (-9%), according to the idealista analysis.