The International Monetary Fund (IMF) is recommending Portugal discontinue its support programs for young people purchasing their first homes. The IMF argues these subsidies have inadvertently increased demand in the housing market, exacerbating existing imbalances. According to the fund, the measures have not effectively addressed affordability issues and are contributing to market distortions. The recommendation suggests removing these supports to allow market forces to rebalance supply and demand. This policy reversal is presented as a necessary step towards stabilizing the Portuguese housing sector. The IMF’s assessment forms part of a broader review of the Portuguese economy and its fiscal policies. The move aims to prevent further inflationary pressures within the housing market.