For many Greeks, owning a home remains a distant dream. Despite the country’s recent economic recovery, housing has become increasingly out of reach for a growing share of the population.
Bottom of the EU in affordability
A new study by the Bank of Greece places the country at the bottom of the European Union in terms of housing affordability. Nearly one in three households spend more than 40% of their disposable income on housing costs—an alarming figure that highlights Greece’s struggle with yet another negative record.
Rents spiral out of control
Rents, in particular, have spiraled in recent years. Tenants describe asking prices as “unrealistic,” even for small, older apartments. What was once considered a manageable expense has turned into a luxury for many. The European Commission itself now openly refers to Greece’s “housing affordability crisis” in its latest European Semester report.
Government response under fire
The government’s response so far has been criticized as inadequate, leaving the housing crisis to fester. The Bank of Greece warns that only a comprehensive national housing strategy can turn the tide. Its governor, Yannis Stournaras, argues for policies that stimulate economic activity in the regions and ease pressure on urban centers, helping to distribute demand more evenly across the country.
A generation locked out
At the heart of the problem lies a toxic mix: years of economic crisis, shrinking incomes among people in their 30s and 40s, and limited access to mortgage loans. Together, these factors have locked an entire generation out of the housing market.
An uncertain future
For now, the dream of affordable housing seems further away than ever. And as experts warn, without bold, long-term planning, Greece’s real estate story is unlikely to have a happy ending.
Source: tovima.com
