Young people in Madalena are giving up on buying a first home as prices climb

A generation that cannot find a home in its own municipality

Average house prices in Madalena have risen far faster than average wages.

Renting is no more affordable an option

Landlords prefer short-stay holiday lets, which are far more lucrative.

Families moving out to more distant parishes

Young couples are house-hunting in parishes further from the centre of Madalena.

A problem that is starting to get an official response

Cost-controlled housing schemes aimed at young residents are under consideration.

Wages that have not kept pace with prices

Average house prices in Madalena have risen in recent years far faster than average wages across the municipality. Young people working in services or in local government say saving for a deposit is becoming ever harder. Several banks on the island have also tightened the terms on which they lend for first homes.

Holiday lets are squeezing out long-term rentals

Property owners in Madalena are increasingly choosing to put their homes on the short-stay holiday market, which pays far better than letting to residents on a long-term basis. That preference thins out an already scarce supply for anyone looking for a permanent home in the municipality. Residents associations are calling for a cap on the number of tourist licences in certain parts of the area.

Young families moving out to more distant parishes

Faced with a lack of affordable options in central Madalena, a number of young couples have chosen to settle in outlying parishes with poorer public transport links. That dispersal makes juggling work and family life harder for those who work in the main town. Some neighbouring councils are already seeing a slight rise in young residents arriving from Madalena.

First official moves to tackle the problem

The Governo Regional dos Açores is looking at cost-controlled housing schemes aimed specifically at young residents of the municipality, with sale or rental prices below the open market. The Câmara Municipal de Madalena is taking part in the talks to identify available public land. Youth organisations on the island are urging that the measures be put into practice as soon as possible.