A Reuters report highlights Greece’s housing crisis, documenting the impact that very high rents are having on citizens—putting the country’s economic recovery at risk.
Despite economic growth (higher than the EU average), early debt repayments, and record tourist arrivals, many people are being “left behind” due to the surge in rents.
“Income adequacy is at historically low levels, with six in ten households reporting that their monthly income is not enough to cover their needs until the end of the month,” the Institute of Small Enterprises (IME) said in a report, an umbrella body representing small businesses.
Although the average wage rose by 27% in 2019–2024, the share of Greeks’ income that goes on rent is the highest in the EU.
This means people are cutting back on heating, food and entertainment spending, while private debt is rising.
Many of the problems also stem from the crisis years, when housing construction froze. According to a Piraeus Bank report published last year, there is a shortage of 180,000 homes for rent or sale in Greece’s major cities.
From 2019 to 2024, as Greece emerged from the crisis, rents rose on average by more than 50% in Athens, according to E-Real Estate. Over the same period, average rents for two-bedroom apartments rose by 26% in Madrid and by 14% in Paris.
Source: Reuters
