According to the most recent Eurostat data, in 2024 Greek households allocated, on average, 35.5% of their disposable income to housing-related expenditures. This figure is the highest in the European Union and significantly exceeds the EU average of 19.2%. Housing costs include rent or mortgage repayments, energy expenses, taxes, and other property-related charges associated with the primary residence.
Equally alarming is the proportion of households experiencing excessive housing cost overburden. Approximately 30% of Greek households spend more than 40% of their disposable income on housing, placing Greece in the most adverse position among EU Member States. Such overburden is closely linked to heightened risks of payment arrears, over-indebtedness, and a severely constrained capacity for savings.
Housing cost pressures also display pronounced geographical disparities, with urban areas facing substantially higher burdens. A study by the Foundation for Economic and Industrial Research (IOBE) conducted for the Bank of Greece indicates that households in urban centers devote a significantly larger share of their income to housing compared to those in semi-urban and rural areas, primarily due to the higher concentration of tenants. Renters, particularly in major metropolitan regions, face markedly greater financial strain than owner-occupiers.
Although Greece continues to record a relatively high homeownership rate—approximately 70%—this figure has declined appreciably over the past decade. In 2010, the homeownership rate was nearly eight percentage points higher, underscoring the gradual erosion of owner-occupation as the predominant housing tenure. This trend is especially pronounced among younger cohorts, as 67% of young adults in Greece continue to reside with their parents, according to Eurostat data for 2024.
At the same time, Greece exhibits one of the highest vacancy rates in the European housing market. Approximately 35% of the total housing stock remains unoccupied, according to the most recent census of the Hellenic Statistical Authority (ELSTAT). This situation reflects the enduring effects of the economic crisis and the accumulation of non-performing loans, as well as unresolved ownership issues, the ageing of the building stock, and insufficient incentives for reactivation.
The structure and dynamics of the housing market have shifted markedly since 2018. Following the sharp contraction in prices during the financial and sovereign debt crises, residential property values have entered a sustained upward trajectory. This development has been driven by increased investment in housing, rising foreign direct investment, the implementation of the Golden Visa programme, and the rapid expansion of short-term rental activity.
The proliferation of short-term rentals, in conjunction with the strong recovery of tourism over the past decade, has significantly reduced the supply of dwellings available for long-term rental, particularly in areas with high tourist demand. This contraction in supply has directly contributed to rising rental prices, further exacerbating housing affordability pressures for households.
Finally, Greece has historically recorded very low levels of public expenditure on housing compared to the European average. The abolition of the Workers’ Housing Organization (OEK) in 2012 created a persistent institutional vacuum in the provision of large-scale social housing. As a result, the fulfillment of housing needs has relied predominantly on family support and the private market—a model that is increasingly revealing its structural limitations.
International experience demonstrates alternative approaches to addressing housing affordability challenges. In countries such as Austria, France, Denmark, and the Netherlands, social housing has long constituted a central pillar of housing policy. A substantial share of the housing stock is owned by public or non-profit entities, with regulated rents and clearly defined income eligibility criteria, thereby exerting a stabilizing influence on the broader housing market.
By contrast, countries with a more limited tradition of social housing, including Spain and Portugal, have in recent years undertaken significant initiatives to establish new housing institutions, mobilize public assets, and introduce financial incentives aimed at expanding the supply of affordable housing. Even in housing markets characterized by a strong private-sector presence, such as the United Kingdom and the United States, governments actively intervene through public financing, regulatory frameworks, and targeted programmes designed to support vulnerable population groups.
