If we analyse the data, we know that more than 10% of the active real estate market is subject to international investment and speculation. And the majority of the active real estate market is in major urban centres (with a very big portion in Lisbon alone).

Amazon, when it was first starting out as a book-seller, made a realisation that if they controlled only 6% of a book’s sales they controlled 100% of the price.

If investors control over 6% of the active real estate market, they control the prices. International investors have much more capital than local Portuguese. Investors need prices to keep rising.

The outcome of the current housing crisis is not due to some Portuguese people owning one or two houses. It’s due to international investors buying properties to rent out on Airbnb and expecting their investment to keep rising double percentage digits every year. They might control only around 10% of the market, but they can control the prices with this.

Also, there are enough houses. Portugal doesn’t need to build more houses to solve the housing crisis. Not that building more houses is bad. But it’s not the best and cheapest solution.

The state can eminent-domain empty houses or force them to be rented out long-term. Ban Airbnb. Create laws that enshrine housing as a human right and not a capital market.

But I also support the state building more public housing. That is always good. Public housing ran as a housing co-op is perfect as well. But the state can just buy empty ones and put them under co-ops as well, and that would be likely be cheaper.