Nearly 3 million Greeks spend more than 40% of their income on housing as housing crisis deepens
Nearly three million people in Greece are spending more than 40% of their monthly income on housing costs, highlighting the severity of the country's ongoing housing crisis, according to a new study conducted by former employees of the Workers’ Housing Organization (OEK) and the Panhellenic Association PANSYPO.
The report reveals that Greece recorded a housing cost overburden rate of 26.4% in 2025, compared to the European Union average of approximately 7.7%. The figure means that more than one in four Greek households face excessive housing expenses, placing Greece among the most heavily burdened housing markets in Europe.
Housing Pressure Persists
Researchers estimate that between 2.7 and 3 million residents are currently living under severe housing pressure. In 2024, approximately 1.24 million households—equivalent to nearly three million people—were classified as housing-cost overburdened. Although the rate declined slightly to 26.4% in 2025, around 1.13 million households, or roughly 2.75 million individuals, remain affected.
The study notes that Greece has experienced persistent housing stress for over a decade. The housing overburden rate stood at 29.6% in 2015 and peaked at 39.5% in 2018 before gradually declining. Despite this improvement, the country continues to perform far worse than the EU average, which has remained between 7.7% and 8.8% during the same period.
Low-Income Households Hit Hardest
The crisis is particularly severe among low-income families. According to the report, as many as 82.1% of households in the lowest income brackets spend more than 40% of their earnings on housing, affecting an estimated 681,000 households nationwide.
Housing costs have become increasingly disconnected from wage growth. Data cited from the Bank of Greece indicate that apartment prices rose by approximately 110% between 2018 and 2025. Over a longer period, from 2007 to 2025, housing prices increased by around 77%, while disposable household income grew by only 14%.
Rent Costs Outpace Earnings
The report estimates that a single-person household faces monthly housing expenses of around €700. For a family with two children, housing costs can range from €1,200 to €1,500 per month, while couples without children typically spend between €900 and €1,100.
Researchers argue that these figures are increasingly incompatible with the wage levels of a large segment of the Greek workforce.
Undeclared Rental Market Raises Concerns
The study also highlights a significant discrepancy between officially declared rents and actual market prices. While the average declared monthly rent in Greece is approximately €255, new rental contracts typically range between €450 and €650 per month.
This gap suggests widespread underreporting in the rental market. Depending on the scenario, researchers estimate that undeclared rental income could amount to between €2.8 billion and €7.1 billion annually, potentially creating a tax revenue gap ranging from hundreds of millions to more than €1 billion per year.
Nationwide Crisis
The housing crisis is no longer limited to major urban centers such as Athens. In Greek cities, the housing overburden rate stands at around 29%, compared with an EU average of approximately 10%. In rural areas, the rate is close to 28%, while the European average remains near 6%.
Researchers conclude that housing affordability has become a nationwide issue affecting both urban and rural populations.
Empty Homes and Lack of Social Housing
Despite the growing demand for affordable housing, Greece has approximately 725,000 vacant apartments, representing around 13.5% of the country's housing stock.
At the same time, Greece has one of the lowest levels of social housing in Europe. The country reportedly provides only four social housing units per 1,000 residents. By comparison, Austria has 274 units per 1,000 inhabitants, France 159, Denmark 90, Spain 20, and Portugal 19.
The report points to the abolition of the former Workers’ Housing Organization (OEK) as a key institutional gap. Before its closure, OEK had developed around 600 housing settlements across Greece, constructed and allocated approximately 50,000 homes, supported 85,000 families through housing programs, assisted 170,000 loan beneficiaries, and provided rental assistance to roughly 120,000 families annually for 25 years.
More than 150 former OEK housing units reportedly remain vacant and without ownership allocation despite being ready for occupancy. Researchers argue that these properties could immediately provide relief to families struggling with housing affordability.
As policymakers debate new housing initiatives, the existence of publicly owned vacant homes has emerged as a politically sensitive issue, underscoring the growing urgency of Greece's housing crisis.
