According to the study, six in ten renters in Athens and nearly seven in ten in Thessaloniki are spending more than 40% of their disposable income on rent—a level widely considered unsustainable by international standards.
The report highlights Greece as the worst performer in the European Union when it comes to housing affordability. Nationally, 31% of households in urban areas exceed the 40% income threshold for housing expenses, while rural areas are not far behind at 25%. These findings are based on data from the Household Finance and Consumption Survey (HFCS), and they offer a comprehensive look at the mounting strain housing is placing on Greek families.
The crisis is hitting some groups harder than others. Renters, the unemployed, young adults, single-parent families, and individuals with lower education levels are particularly vulnerable. The affordability gap is being driven by several converging forces: a sharp rise in property prices since 2016, an influx of foreign investment into Greek real estate, the rapid expansion of short-term rentals such as Airbnb, and a chronic lack of social housing and targeted government support.
In the country’s two largest cities, the housing burden is especially severe. In Athens, 61% of renters exceed the 40% income threshold, and in Thessaloniki, that figure rises to 68%. The report notes that younger households—particularly those headed by someone under 30—as well as single-person households, are disproportionately affected. By contrast, families with higher education levels or multiple earners show greater financial resilience.
The structure of housing tenure also plays a critical role in how households experience the crisis. Owners without mortgage debt are faring relatively well, while both renters and mortgage-holders are facing significantly higher financial stress. Geographically, the problem is not confined to the major cities. Regions such as Epirus, Crete, the Ionian Islands, and Attica have all seen a notable increase in housing cost burdens, while only a few areas—such as Eastern Macedonia and Thrace—have seen minor improvements. Yet even there, the report finds no substantial sign of relief.
The Bank of Greece concludes that solving the housing crisis will require coordinated and sustained policy action. It recommends a comprehensive strategy that includes revising the criteria for housing benefit programs, expanding access to social housing, tightening regulations on short-term rentals, and incentivizing the use of vacant properties.
Additionally, the report calls for improved data collection and analysis in the rental market, pointing to other European countries where evidence-based housing policies have helped mitigate similar pressures.
