Vacant homes and public investment enter the Azores housing debate

The difficulty of finding affordable housing in the Azores is the focus of two separate initiatives: a study recommends measures to increase the supply of homes, while the Regional Government proposes a larger allocation for housing in its 2027 investment plan.

The report, titled “The Housing Crisis in the Azores”, says public housing accounts for around 2.3% of the region’s housing stock. It puts the share of social housing below 0.5% on Pico and São Jorge and reports an overcrowding rate of 16.2% across the Azores, the highest in Portugal.

The authors propose bringing vacant properties into use, placing limits on short-term tourist rentals and introducing mechanisms to regulate rents. They also recommend a public pool of emergency accommodation, support for housing cooperatives and partnerships between public and private organisations in areas under greater development pressure.

Sociologist Fernando Diogo, one of the authors, argues that the shortage affects working-class households and much of the middle class as well as the most vulnerable. He calls for closer coordination between municipalities and the Regional Government, given the small size and limited technical capacity of many local authorities.

Meanwhile, Regional Secretary for Youth, Housing and Employment Maria João Carreiro presented a proposal to lawmakers to increase the housing allocation in the investment plan from €16.3 million in 2026 to €27 million in 2027, a rise of €10.7 million. At a hearing in Horta on 6 November, she said the government intended to strengthen support for construction, urban rehabilitation and self-build housing, even without funding from the Recovery and Resilience Plan.

Carreiro called for municipalities, cooperatives and the private sector to take part in the planned investment, including the rehabilitation of existing homes. The study’s recommendations are separate from the government proposal; the 2027 plan and budget are scheduled for debate and a vote in the final week of November, in a regional parliament where the government does not have an absolute majority.