Greece’s Housing Crisis: When a Home Becomes a Luxury

The European Commission itself now openly refers to Greece’s “housing affordability crisis” in its latest European Semester report. 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.

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, 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 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. 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. 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