In recent years, Greece has seen a sharp rise in housing costs that far outpaces income growth, creating a deepening crisis for both prospective homeowners and renters. A new study commissioned by Alpha Bank reveals that more than half of Greeks now consider buying a home to be entirely out of reach, while nearly four in ten view it as barely possible. Renting, once the more accessible alternative, is also becoming unsustainable. One in two renters now spends over 30% of their monthly income on rent alone—a threshold commonly used to define housing cost burden.
This financial strain has real social consequences. Many young Greeks are unable to leave their family homes until well into their thirties, delaying key milestones like independence and starting families. The average age for moving out now hovers around 35, a sharp contrast to the European norm.
The housing crisis is most pronounced in Greece’s major cities and popular tourist areas, where the rise of short-term rental platforms such as Airbnb has further tightened the market. In cities like Athens and Thessaloniki, over half of renters have seen their rent increase in the past two years, with some reporting hikes of more than 20%. On the islands, where tourism drives much of the local economy, rent increases were even more widespread.
Compounding the issue is the fact that property prices are rising faster than wages. According to the Bank of Greece, home prices jumped by nearly 14% in 2023 and by another 8.7% in 2024, while household incomes increased at a much slower pace. This widening gap means that even as Greeks earn more, they are falling further behind in terms of housing affordability.
Despite these challenges, real estate is still viewed as a worthwhile investment. The vast majority of respondents in the Alpha Bank survey—74%—believe buying property remains a good long-term strategy. Only a quarter consider renting the more flexible or sensible choice.
