Rents threaten Greece's economic recovery - Unstoppable growth. Even government subsidies have had no impact
Greece's economy is recovering sharply from the 2009-2018 financial crisis. Growth is exceeding the EU average, the country is repaying its bailout loans ahead of schedule, and tourist arrivals are at a record high.
Yet, amid the recovery, many Greeks are falling behind as rents rise sharply and incomes fail to keep pace, forcing them to spend less on items such as heating, entertainment or food and take on more debt. This is creating a drag on Greece's economic recovery, experts said.
“Income adequacy is at a record low, with six out of ten households reporting that their monthly income does not reach the end of the month,” the Greek Institute of Small Enterprises (IME), a confederation of small businesses, said in a report.
Many of the problems stem from the crisis years, when housing construction froze. According to last year’s report, there is a shortage of 180,000 homes for rent or sale in major Greek cities. The offer of golden visas available since 2014 for foreigners to buy property has exacerbated this shortage. Since the mid-2010s, 20,000 properties, mostly in Athens, and another 150,000 have been converted into short-term rentals for tourists.
Rent increases are affecting many European countries, but Greece stands out. From 2019 to 2024, as Greece emerged from years of painful austerity, rents rose by more than 50% on average in Athens. At the same time, average rents for two-bedroom apartments rose by 26% in Madrid and 14% in Paris.
Average Greek wages have increased by around 27% over that period, and Eurostat data shows that Greeks spend more on housing as a percentage of their income than any other EU country.
The government is subsidizing rents for some low-income earners, but renters say this has had little impact. More than 83% of Greeks say they can't save money, and 40% spent less on restaurants and movies last year than in 2024.
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