Portugal and Spain, historically magnets for international talent and retirees, are now battling the European Union’s worst housing affordability crisis—a situation fueled overwhelmingly by a surge in immigration. The rapid arrival of foreign workers, many holding temporary work visas, has collided with a staggering housing shortfall of over one million homes across the two nations. With average rents in Lisbon now consuming more than 110% of typical local earnings, the dream of Iberian living has become a financial nightmare for many immigrants. As visa programs bring in new residents faster than construction can keep up, this article explores why policy responses are struggling to tame the rental market chaos and what it means for future newcomers.