The housing crisis in Greece is reaching a boiling point, keeping many Greeks awake at night and causing widespread concern. The rapid escalation of rental costs and property prices, coupled with a significant shortage of available apartments and the ineffectiveness of subsidy programs, has made it increasingly difficult for ordinary citizens to secure housing—whether through buying or renting—particularly in their preferred areas. This mounting difficulty is transforming what was once a mere economic or housing issue into a broader social crisis, as more people find themselves excluded from both homeownership and accessible rental options. As living costs rise sharply, low- and middle-income households bear the brunt, deepening existing social inequalities and putting immense pressure on vulnerable groups.
But here’s where it gets controversial: a recent Europe-wide survey conducted by Polling Europe, which Kathimerini has exclusively revealed, highlights that housing has become one of the most critical social challenges of our time. The survey indicates that in the entire European Union, approximately 66% of citizens see housing as a fairly or very serious problem. However, Greece stands out with an alarming 80% of its population perceiving housing as a significant issue—making it the country most troubled within the EU on this front. These perceptions aren’t unfounded. Factors such as Greece’s prolonged economic downturn, disruptions from energy crises, soaring living costs, a boost in tourism that inflates rental markets, and a shrinking housing stock have converged to create what experts are now calling a perfect storm—pushing Greece to the top in the EU in terms of relative housing expenses.
How did Greece arrive at this critical junction?
Data from Eurostat confirms that Greece bears by far the highest housing costs relative to income among EU nations. On average, Greek households allocate about 36% of their disposable income to housing expenses—more than double the EU average of 19%. In cities, roughly one in three Greeks spends over 40% of their income on housing costs, which include rent or mortgage payments along with utilities like electricity, water, and heating. What's more concerning is that this is happening despite the fact that Greece’s urban housing stock is both limited and often of subpar quality.
Historically, Greece’s high rate of homeownership played a crucial role in cushioning the blow of the 2008 economic crisis and maintaining social cohesion. Yet, recent years have seen rapid changes. According to Angelos Seriatos, scientific director at Prorata—who led the Polling Europe survey—this shift is largely due to a steep decline in household incomes. From 2009 to 2014, Greeks experienced a collective loss of over 40% of their disposable income. Compared to the broader European trend of gradual income growth—22% over two decades—Greece’s income has shrunk by about 4-5%. Meanwhile, the surge in tourism, especially in urban centers and islands, led property owners to exploit their real estate through short-term rentals, significantly impacting rental prices and availability.
Nikos Vettas, a prominent economist and director of the Foundation for Economic and Industrial Research (IOBE), points out that the construction sector in Greece came to a near halt during the debt crisis. Only recently has it begun to recover, but it remains well below pre-crisis levels. “The construction of new homes and renovations of existing structures are no longer as dominant in investment terms as they used to be. Moreover, there's a critical shortage of skilled labor needed for current projects,” he explains. Vettas emphasizes that Greece's population has also shrunk, while the number of individual households—particularly in urban areas—has increased, intensifying demand for smaller homes. Rising costs of building materials, energy, and financing, combined with labor shortages, have made construction more expensive. This situation is worsened by the aged housing stock requiring urgent renovations, complicated by a heavily bureaucratic property transfer process that causes delays and market distortions.
Content director Ilias Nikolaidis from the Dianeosis think tank highlights another fundamental issue: city planning in Greece. He notes that Greek urban areas developed in a highly fragmented way after World War II, with little coordinated intervention. The absence of a comprehensive housing policy worsened by the crisis—exemplified by the shutdown of the Workers’ Housing Organization in 2014—has led to a chaotic property market. Additionally, falling property values attracted foreign investors after 2015 and as tourism grew, further driving up prices and making affordable housing increasingly scarce.
Regarding possible solutions, a majority of Europeans and Greeks themselves support specific policies. The survey indicates that 27% of Europeans believe that establishing rent caps should be a top priority, and a similar proportion advocates for incentives to encourage private construction of new homes. Others favor social housing programs aimed at helping vulnerable populations, while some call for restrictions on short-term rentals and foreign property investments. Voters’ preferences align with party ideologies: left-wing, green, and social democrat supporters tend to back rent controls and social housing, whereas center-right and conservative groups favor incentives for private developers to increase supply.
In Greece specifically, 30% favor implementing rent caps temporarily, 24% support restricting short-term rentals, 23% emphasize incentives for new housing construction, and 21% endorse social housing initiatives. Angelos Skiadas, head of Greece’s tenants’ association, argues strongly for rent caps, suggesting that a cap—set for three to four years—could provide immediate relief for tenants while longer-term strategies develop. He also advocates extending lease durations from three to six years, to provide stability similar to the time needed for a child to complete a full school cycle.
Skiadas criticizes existing government measures, like a subsidy equivalent to one month’s rent, calling it ineffective and even counterproductive because landlords often respond by increasing rent demands. Restrictions on platforms like Airbnb haven’t yielded significant results either, as property owners simply switch to long-term rentals at high rates to recover their investments. Vettas notes that tackling these issues won’t be instantaneous. Yet, he emphasizes that targeted interventions—such as alleviating immediate pressures in affected areas—can be a start. Over the medium term, the focus should be on boosting housing supply and making the market more adaptable to changing demands.
The housing issue hits hardest those living in rented accommodation, but its ripple effects extend further, impacting Greece’s demographic challenges. As Ilias Nikolaidis points out, high housing costs constrain young couples and families from investing in their future, starting a family, or leading ordinary lives. The problem has morphed beyond economics into a significant social crisis.
Seriatos from Prorata observes that the worsening housing crisis has become a high-priority social and political issue across Europe, prompting calls for coordinated policies. In December 2025, the European Commission proposed the European Affordable Housing Plan, offering funding for social housing projects and emphasizing the importance of this sector within broader fiscal strategies. Countries like the Netherlands, with plans to build 900,000 new homes by 2030, embody proactive approaches to this challenge. Other nations have adopted measures—such as restricting short-term rentals, providing tax incentives for long-term leases, and utilizing public land—to address the crisis.
Seriatos warns, however, that without strong public policies, investment in social housing, and stringent regulations—particularly against speculative short-term rentals—the crisis could worsen further. He also raises a red flag regarding the rise of far-right groups across Europe, which have begun exploiting the housing controversy this crisis fosters. These parties argue that housing should be reserved solely for native citizens, blaming immigration and inflation as the main causes of the problem, which is a highly controversial and divisive stance. The rise of such nationalist rhetoric raises questions about whether political forces are truly committed to solving the root causes of the crisis or simply capitalizing on public frustration to promote exclusionary agendas. So, the question remains: do we agree with solutions that prioritize societal inclusion and sustainable policies, or will short-term nationalist narratives dominate the discourse? How do you see Europe's approach to tackling this pressing issue—innovative policies or populist exploitation?
