Future-oriented housing

The Special Rehousing Program, created in the 1990s and in effect until 2005, was one of the most significant public responses to Portugal's housing problem. It helped lift thousands of families out of undignified conditions and offer them a new opportunity. Since then, however, the political vacuum has been complete. The housing crisis we face today did not arise by chance. It is the result of the lack of vision of those who governed the country over the last three decades, coupled with a profound demographic shift that was systematically ignored.

Portugal has aged. The birth rate has declined, families have become smaller, and single-parent households have multiplied. But public policies continue to focus on a country that no longer exists. Instead of anticipating the challenges of new generations, the choice has been made to protect the comfort of those who already had homes. Government has been driven by the votes of those who could maintain the status quo. And the consequences are clear to see. An entire generation has been left behind.

Today, even those with jobs and income are far from being able to afford housing. The myth has been created that earning 1,500 euros a month in downtown Lisbon or Porto is synonymous with privilege. But that amount no longer allows for rent compatible with a decent life. Young people are postponing projects, couples are returning to their parents' homes, and the middle class finds itself pushed to increasingly remote areas, sacrificing time, quality of life, and stability.

We are not alone in this challenge. Other European countries face similar tensions. The difference lies in the responses. Finland, for example, created a housing loan system for young people, supported by the state, that works. It's called ASP. It allows you to purchase a first home with advantageous terms and, later, convert the loan into a traditional loan. The result is clear: young people with autonomy, assets, and horizons. The same is true for access to student housing, with offers managed by universities or academic associations, well below market prices.

And what about here? In Portugal, the Socialist Party has governed for most of the last 25 years. When it had an absolute majority, it squandered the opportunity to reform the sector. It opted for inaction. The "More Housing" program, announced with promises of change, ended up creating uncertainty, driving away investment, and failing to meet the needs of those most in need. Demographic pressure on urban centers, exacerbated by uncoordinated migration flows, made everything even more difficult. Demand increased, but supply remained stagnant. Cities were no longer able to meet the needs of the population living and working there. Once again, planning, courage, and vision were lacking.

The Portuguese middle class has changed. And with it, housing needs have also changed. Persisting in the illusion that everything remains the same is condemning the future of a generation. Housing must no longer be seen as a side issue. Today, it is one of the main keys to social cohesion, economic growth, and intergenerational justice. The Democratic Alliance government has begun to reverse this trend, with concrete solutions, dialogue, and responsibility. It is crucial to significantly increase the supply of public housing. Today, this stock represents only 2% of total housing in Portugal, while in countries like the Netherlands and Sweden, it exceeds 30%. It is also essential to develop comprehensive affordable rental programs, lower rental taxes, streamline and simplify construction processes, and move forward with a VAT reduction on construction. It is not possible to build houses in 24 hours, but political priority and will in this area will produce results in the medium term.

Several steps have already been taken to support the empowerment of young people. Tax exemptions for first-time home purchases, increased income tax deductions, and a commitment to expanding the public offer of affordable rentals are just a few examples. The AD government has demonstrated its commitment to developing policies based on intergenerational solidarity. Housing is no different. Now, we need to integrate this response with the broader social and economic reality I identify in this text. Only then will we be able to restore hope to those who want to build their future in Portugal.