Greece’s strong economic rebound is being overshadowed by a rapidly worsening housing affordability crisis, as surging rents force many residents out of city centers and strain household finances.
In Athens, rents have risen more than 50% between 2019 and 2024, far outpacing wage growth. While average salaries have increased by about 27% during the same period, many households are struggling to keep up with housing costs, according to market and EU data. Experts warn that the growing gap between incomes and living expenses could slow consumer spending and weaken Greece’s broader economic recovery, News.Az reports, citing Reuters.
The housing shortage is partly rooted in the country’s 2009–2018 financial crisis, when construction activity stalled. According to banking sector estimates, major Greek cities now face a shortage of roughly 180,000 homes available for rent or sale. The situation has been intensified by foreign investment and tourism-driven short-term rentals.
Since the introduction of Greece’s “golden visa” program in 2014, tens of thousands of properties, particularly in Athens, have been purchased by foreign investors. At the same time, large numbers of homes have been converted into short-term tourist rentals, further limiting supply for local residents.
The impact is being felt across income groups. Data from Greece’s Small Enterprise Institute suggests six in ten households struggle to cover monthly expenses, while more than 80% say they are unable to save money. Many residents are cutting back on everyday spending such as heating, entertainment, and dining, which economists say could create long-term pressure on domestic demand.
The crisis is also reshaping communities. Rising property prices and rent increases are pushing long-time residents out of central neighborhoods, forcing families to move to suburbs or share housing with relatives. Home ownership rates have also declined, dropping below 70% in 2024 — the lowest level on record.