The housing crisis in Greece has reached critical levels, with rental prices in Attica soaring by as much as 100% in recent years.
The rapid rise in housing costs is putting immense pressure not only on low-income households but also on the middle class, making affordable housing increasingly out of reach.
According to data from the National Statistical Office, rent prices in December 2024 increased 8.5% year-on-year, more than three times the average inflation rate of 2.6%. Experts warn that the peak has yet to be reached, despite government interventions such as regulations on short-term rentals, changes to the Golden Visa program, and tax incentives for vacant properties.
Demand Surging, Wages Lagging Behind
“The inability of many people to buy a home is fueling demand for rental housing,” said Lefteris Potamianos, President of the Association of Realtors of Attica. He emphasised that while demand continues to grow, rising rental prices will soon reach a point where they become unaffordable, requiring state intervention.
Comparing rental price increases with income growth over the past eight years highlights the severity of the crisis. Between 2017 and 2024, rental prices for a typical 80-100 sqm apartment in Attica increased between 21.1% and 100%, with most neighbourhoods seeing rises between 45% and 80%. In Thessaloniki, the situation is even worse, with rent hikes also reaching 100%.
Meanwhile, wage increases have not kept up with rental inflation. In 2017, the average monthly net salary was €864, while in 2024 it reached €1,073, marking a 31% increase—far below the surge in rental costs. The minimum wage saw a larger percentage increase, rising from €683.76 to €968.33 (+41.6%), but remains insufficient to offset skyrocketing rents.
Neighbourhoods Hit Hardest by Rent Increases
Rental price hikes have affected both prime areas and traditionally affordable neighbourhoods. Over the past eight years, rental prices have increased by:
- 100% in Kolonaki
- 89% in Piraeus
- 87.5% in Nikaia
- 78% in Kolonos
- 70% in Kallithea and Gkyzi
- 67% in Pagkrati
At the same time, the supply of rental properties remains critically low. In Attica, for example, only 1,755 apartments of 80-100 sqm were available for rent on a major listing site—even when filtering for prices as high as €1,000 per month.
A Housing Market in Crisis
One major factor driving rent inflation is the large number of vacant properties that remain off the market. According to ELSTAT’s 2021 census, 255,300 homes in Attica and nearly 800,000 across Greece are vacant—many of them owned by banks or investors holding them off-market.
Greece now holds the highest rate of rental difficulty in the EU, according to Eurostat’s 2023 data, surpassing even France and Spain. With 26.1% of Greek households struggling to afford rent, compared to 24.1% in France and 17.2% in Spain, the country faces a worsening housing crisis.
As rents continue to climb, thousands of families are forced to live in older, energy-inefficient homes, which add extra costs for heating and cooling—further stretching household budgets. The government is under mounting pressure to introduce effective housing policies to prevent the crisis from spiraling out of control.