Just returned from Porto in December and talking to many many local Portuguese, the low wages and high cost of housing is usually one of the first things mentioned. One thing I had to discover after a bit of digging however was that inheritance law plays a largely undiscussed factor in the housing bubble currently happening.

All housing is inherited in equal share by all descendants which usually goes exactly the way you'd expect when money and family mix, no one can agree on what to do so it sits unused / unmaintained until some rich dumb foreigner offers 2-Nx the market value and everyone can at least agree to profit.

That and the previous junta and dictatorship before that means tons of property is sitting basically rotting in place.