Lisbon's Failed Promises: Housing Crisis, Overflowing Streets, and Stalled Public Transport Under Moedas

The Lisbon City Council under Carlos Moedas is drawing heavy fire from opposition parties and municipal workers' unions six months after October 2025 elections, with critics calling his second term a masterclass in stagnation. The political reality underpinning this dysfunction is stark: after a councilor elected on the Chega ticket defected to become an independent and joined Moedas' governing bloc, the mayor secured an absolute majority for the first time—a shift that has concentrated power and shaped policy in ways opposition parties say prioritize political favors over residents' needs.

Housing costs continue to climb, rubbish piles up on streets, and promises of sweeping reform have shrunk to modest tweaks—all while critics argue this informal alliance with the right-wing Chega party sidelines constructive input from smaller opposition voices and complicates the governance agenda.

Moedas, reelected through a PSD/CDS-PP/IL coalition and later bolstered to absolute majority through the Chega defector, now governs a city where residents increasingly ask: where's the transformation?

Housing Crisis Deepens as Rents Hit Record Highs

Lisbon's rental market remains in crisis mode. By March 2026, average monthly rents in the capital reached €20.80 per square meter—the highest in Portugal—putting typical two-bedroom apartments between €1,200 and €2,000 per month. For context, Portugal's minimum wage in 2026 stands at €820, while median salaries in Lisbon hover around €1,300–€1,500. This means many wage earners in the capital are spending 80–160% of their earnings on rent alone—an affordability crisis that extends well beyond lower-income households to the broader middle class and expat workers.

The Socialist Party (PS) council members argue that the municipal government has offered no meaningful counter-strategy, even as the national government—also led by PSD/CDS-PP—continues selling off publicly owned buildings with residential potential. "The Lisbon City Council stays silent while property with housing aptitude gets auctioned for private development," the PS stated.

Meanwhile, the Bloco de Esquerda (BE) says the housing emergency has only worsened on Moedas' watch, with gentrification and tourism pressures pushing residents out of traditional neighborhoods. The council's 2026 budget promises 102 affordable homes delivered this year, part of a four-year target of 700 units—but critics dismiss this as a drop in the ocean when measured against need. A €128M package for rehabilitation and public space investment has been announced, yet the Communist Party (PCP) accuses the administration of prioritizing real estate developers over families, while social housing projects gather dust in filing cabinets.

The Livre party is equally scathing, noting that Moedas' strategy amounts to "patchwork without a coherent housing policy at the scale this problem demands." With public housing representing just 2% of Portugal's total stock—one of the lowest rates in the European Union—Lisbon's dependence on market forces and speculative investment has left thousands priced out of their own city.

Rubbish Reform Stalls Amid Staff and Vehicle Shortages

The promise of a "profound transformation" in urban waste management was a headline pledge during the 2025 campaign. Moedas vowed to centralize rubbish collection under the Lisbon City Council, ending delegation to parish councils, and introduce six-day-a-week pickups across the capital.

Six months later, the reality is more modest. The council has assumed responsibility for collecting bags placed next to recycling bins and now shares tasks like street sweeping and washing with parishes—but the broader overhaul has been downgraded to what opposition figures call "adjustments." The ambitious six-day schedule remains aspirational, contingent on hiring additional staff and procuring more collection vehicles—both of which are moving slowly.

Nuno Almeida, president of the Lisbon Municipal Workers' Union (STML), which represents over 15,000 municipal employees, provided concrete evidence of operational breakdown. "Not all scheduled nightly pickups are completed because there aren't enough trucks," he explained. The union reports that roughly 500 positions remain unfilled, particularly among street cleaners and specialized vehicle drivers—a staffing gap that directly explains why visible refuse accumulates on city streets. Vehicle numbers have barely budged since a strike in late 2024.

The 2026 municipal budget does allocate €12M for fleet renewal and includes a 49% increase in hygiene funding—a move that won approval from Chega. But union leaders and opposition councilors argue the funding boost has yet to translate into visible improvements on the ground. Almeida warned that the grace period for the new administration is ending, urging urgent investment in both personnel and equipment to prevent further service deterioration across waste collection, fire services, parks maintenance, and cemetery operations.

Mobility Woes: Buses Slow Down, Passengers Disappear

Public transport in Lisbon is moving backward—literally. The PS council faction highlights that Carris buses have never circulated so slowly, with congestion and lack of dedicated lanes choking the network. Ridership is falling, a trend exacerbated by deteriorating service quality and limited investment.

Currently, cycling accounts for less than 3% of daily journeys in Lisbon, compared to 62% in Copenhagen and approximately 25% in Amsterdam. These European cities achieved their cycling dominance through decades of integrated infrastructure investment—protected bike lanes linked to metro systems, secure parking, and traffic calming. Lisbon's 2026 budget includes provisions for modest mobility upgrades, but critics say the allocations fall short of reversing years of neglect and lack the systemic approach these benchmarks represent.

Livre points to the absence of meaningful expansion in bike lane infrastructure, while the BE notes that traffic congestion has worsened across the city center and residential districts. European cities like London and Stockholm have demonstrated that congestion charging reduces car traffic by 12–33%, while Rome's limited traffic zones cut vehicle volumes by 20% during peak hours. Yet Lisbon's administration has made little progress toward such integrated mobility strategies, according to opposition voices.

For a city that depends heavily on tourism revenue, transport breakdowns also risk undermining the visitor experience—a point not lost on municipal workers who serve both residents and tourists daily.

What This Means for Residents

If you live in Lisbon, the last six months suggest limited immediate relief on the issues that matter most:

• Housing affordability: Expect continued upward pressure on rents, with new affordable units arriving slowly and in insufficient numbers.

• Waste management: Rubbish collection will improve incrementally at best until staffing and vehicle gaps are filled—likely not until 2027.

• Public transport: Plan for ongoing delays and crowded Carris services unless the council accelerates investment and infrastructure changes.

• Political stability: The council's reliance on informal support from Chega means policy can shift unpredictably, especially on cultural and social issues.

Political Bargaining and Governance Consequences

The political reality underlying much of this municipal dysfunction is direct: Moedas governs with tacit backing from Chega, the right-wing party that won one council seat in October 2025. After a councilor elected on the Chega ticket defected to become an independent and joined Moedas' governing bloc, the mayor secured an absolute majority for the first time.

The PS accuses Moedas of granting political favors in exchange for Chega's support, including the controversial appointment of Mafalda Livermore—a Chega sympathizer—to the Social Services directorship, a move later reversed. The council also approved new regulations under Chega's influence that restrict opposition interventions and open loopholes for new tourist accommodation registrations, despite widespread concern over alojamento local saturation.

Livre and BE say this alliance has concentrated power in the mayor's office, sidelining constructive input from smaller parties. Proposals on minority rights, constitutional anniversaries, and tenant protections have been voted down. Even Chega itself complains that Moedas absorbed one of its councilors to "govern with less scrutiny," though the party voted for the 2026 budget.

The PCP goes further, alleging that management positions at the council and municipal companies are being filled through favoritism rather than competitive public tender, reflecting what they call an "anti-democratic" governance style.

Schools, Culture, and the Glória Funicular Tragedy

Education infrastructure remains another flashpoint. The 2026 budget earmarks €38M for school refurbishment, with four schools currently under construction and ten architectural projects underway. A new Educational Charter approved in February envisions structural work on 49 schools and the construction of 27 new facilities—but the source of the estimated €1B in funding remains unclear. Moedas has ruled out tapping the Recovery and Resilience Plan (PRR) for school rehab, leaving questions about financing unanswered.

Meanwhile, municipal schools continue to deteriorate, with broken elevators, leaking roofs, and overcrowded classrooms cited by parents and teachers. The PS highlights that many facilities have been awaiting repairs for years.

In the cultural sphere, controversy erupted after personnel changes at the Teatro do Bairro Alto and the Aljube Museum, following remarks by a Chega councilor advocating for "a culture of the right." Workers at the municipal cultural company EGEAC have expressed alarm over the direction of Lisbon's cultural policy.

The specter of the Glória funicular disaster still hangs over city hall. The September 2025 accident killed 16 people and injured over 20—one of the city's deadliest incidents in recent memory. The tragedy raised urgent questions about maintenance failures and safety protocols at city-managed infrastructure. The PS and BE criticize the administration's opacity in handling the investigation, with families of victims still awaiting answers and public accountability for what led to the catastrophe. This unresolved tragedy underscores broader concerns about the council's stewardship of critical city services and infrastructure maintenance.

Union Perspective: Service Quality at Risk

From the workforce perspective, the last six months represent a missed opportunity. The STML acknowledges that a new governing team needs time to adapt, but stresses that patience is running thin. "We want to provide the best service, but we need minimum conditions and dignity to do our jobs," Almeida said.

Understaffing pervades not just waste collection but also fire services, parks maintenance, and cemetery operations. Work facilities remain inadequate, and promised recruitment drives have stalled. The union fears that without urgent intervention, service quality will continue to slide, damaging Lisbon's reputation and livability.

Budget Wins and Persistent Gaps

To be fair, the 2026 municipal budget does represent the largest capital investment in recent memory—€410M earmarked for infrastructure, equipment, and resident needs. Spending on environment and green spaces rose 64%, and security and civil protection saw a 57% increase. The council also turned a deficit into a €63.2M surplus in 2025, a fiscal achievement that Moedas' supporters highlight.

Yet opposition figures argue that higher spending means little if it doesn't reach the ground effectively. The €90M annual revenue sacrifice from IRS rebates to residents—a flagship PSD policy—draws particular ire from the left, which contends that sum exceeds the council's entire mobility, hygiene, and education budgets combined.

The Road Ahead

Carlos Moedas was elected on a platform of competent management and ambitious reform. Halfway through his first year of a second mandate, the consensus among opposition parties, unions, and civic observers is that ambition has given way to incrementalism—and even that is hampered by resource shortages and the political complications created by the Chega alliance.

For residents, the message is clear: don't expect rapid change in housing affordability, waste collection, or public transport. The reforms promised for 2026 are being postponed to 2027 or later, and the political environment remains fractious.

Whether the council can regain momentum—and public trust—will depend on its ability to deliver tangible results in the months ahead, free from the distractions of backroom political deals and partisan squabbles. For now, Lisbon remains a city waiting for the transformation it was promised.