Trying to plan an unexpected trip to Portugal for the first week in July. I know very little about the area, so looking for some guidance. The Algarve area looks beautiful. We are a family of 5, kids are 23, 21 and 19. We love to hike, water activities (paddle board, kayak, snorkel, sail, etc), enjoy eating at outdoor cafes, shop in local stores. would prefer to stay in an area where we can walk to restaurants/coffee. Like to learn the history of an area (through guided tours), but not big into museums. Can anyone offer suggestions? I've found 2 houses in Carvoeiro which would be perfect for our family. Any suggestions appreciated!

The Algarve is a lovely place, with the main tourist area situated between Faro and Lagos. Carvoeiro has lots of restaurants and a very nice feel to it and is a little less hectic than the slightly larger places along the coast, but it is reasonably situated for easy access to the airport at Faro or a drive along the coast to see the other resorts. We've been right down to Cabo de São Vicente, which is a far west as you can go and really enjoyed the day out. There are other less frequented towns to the east of Faro, such as Tavira, close to the Spanish border, but if you do rent a car don't be tempted to drive into Spain unless you've cleared it with the hire company first.

Carvoeiro is a good choice, hire a car and enjoy.

For a family vacation in the Algarve, I can also recommend the area around Lagos--Praia da Luz, Salema or Lagos itself. From there you can take boat tours, explore windy and rainy Cabo de São Vicente, and further north, the beautiful surfing beaches with their giant cliffs of the Costa Vicentina or walk part of the Fishermen's Trail there.

We have no trouble taking our Portugal rental car across the border to Spain, and did so our last trip from Tavira to Ayamonte. We rent fro Auto Europe and usually have a vehicle from Europar or Avis. No problems taking it into Spain for a day trip, but to return it to Spain is a whole different matter, subject to a huge drop off (expatriation) charge.

We found an AirBnB apartment facing the Lagos harbor and a five minute walk to the central market. Parking might be a problem, although we always managed to find street parking away from the water.

https://flic.kr/p/2grQHKF https://flic.kr/p/2grRafy

Thank you for your response! It seems like Carvoeiro is a nice "happy medium" to some of the more touristy areas and the more quiet beach towns further West. Do most people speak English in this region?

There are also so airbnb's available in Salema. What is this area like? Are there a lot of restaurants/cafes/walkable areas? Thanks for your information!

Thank you! The Lagos area looks beautiful but I was looking for a house or villa as we have 5 people and I couldn't find anything suitable. Looks like a great spot!

Salema is a quiet, small beach resort just west of Lagos. Not a party town at all. We have friends, a family group of 14 who will be staying there in July a NAU Salema Beach Village.
https://www.salemabeachvillage.com/en/

Our country house villa hotel just west of Lagos, Quinta Bonita, between Lagos and Praia da Luz, does have a family villa next door for rent but the area is hugely popular in July, so I don't know about availability. It's a bit late for booking in July, so I hope you find something nice and suitable for your family.
https://www.quintabonitaalgarve.com/villa-rental.

Have you looked at Bel Mar spa & resort on Praia da Mos in Lagos? The family-friendly resort has 2-bedroom apartments, indoor and outdoor pools, and the beach is one of the nicest in the area.
https://www.belmarresort.com/en/.

Most people in the Algarve working in shops, restaurants, cafes etc., do speak English. It has long been a favourite of the UK tourist market and English is widely spoken and understood. We stayed in Lagos a few years ago and particularly loved seeing the storks nesting on chimneys and higher buildings. The only problem with the Algarve is that the sea is always flippin' freezing around the Lagos area and maybe further along the coast too!