Used Homes Now Cost the Same as New Properties in 2019
- Redação Mudei e Agora
- Jun 25
- 2 min read
The appreciation of the used housing stock in Portugal has been so strong that, in 2024, the average price of used homes equaled the level of new properties in 2019, warned CNN Portugal.
This phenomenon represents a critical point in the evolution of the market. In the third quarter of 2024, the average price of a used home was over €200,200, while the average value of a new home exceeded €300,300 for the first time, according to data from the INE.
The difference between new and used reached 50%, but this margin is shrinking rapidly. This complex picture reveals three important signs:
A generalized appreciation of the stock in use, driven by the lack of new supply and urban congestion;
Pressure on affordability, as access to housing now requires very high budgets;
Deregulation of the balance between quality and price, as used properties — often more compact or in poorer conditions — can cost as much as a new one from five years ago.
The analysis indicates that the main causes are:
Urban popcorn: neighborhoods already structured with transportation, commerce and services increase in value without requiring large investments;
High construction costs: it becomes more expensive to build from scratch, driving up the prices of new and used homes;
Demand for ready-made housing: many prefer immediate habitability, even with lower quality, which increases the value of used homes.
The result distorts the market logic. Before, a "used home" was a more affordable alternative, now the difference in the starting point is minimal. For buyers, this means needing more capital and resorting to solutions such as family cooperation, public support or mortgages with shorter terms.
In the regulatory landscape, opportunities are created for:
Tax incentives for the renovation of old housing with quality, preserving what already exists;
Programs to occupy degraded or underused buildings with affordable rents;
Monitoring speculation on used housing stock.
In short, we have seen an unprecedented convergence in the prices of used and new properties, placing the housing stock in a position of collapse in terms of costs, quality and availability. The resolution will require coordinated measures between the public and private sectors.
Source: CNN Portugal, INE / idealista
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