Greece is facing a profound housing crisis, as surging rental prices in the capital and severely depressed average wages have made housing unaffordable for the vast majority.
According to an analysis by the Centre for Liberal Studies (KEFiM) published April 15, Greece has recorded yet another annual increase in rental prices for 2025, to the tune of 10.1%. This marks the second-highest rent increase in the European Union, trailing only behind Croatia, and vastly outpacing the European Union’s 3.2% increase for 2025.
For Athenians though, the financial burden of renting a house is especially disproportionate to their wages. The average rent for a one-bedroom apartment now burns through 70.2% of their average monthly salary, standing in stark contrast with the EU average of 33.8%. The situation is even more dire for Greek families—rent for a two-bedroom apartment in Athens consumes a staggering 93.6% of an average Greek salary (45.6% in the EU). If a household requires an even larger three-bedroom apartment in Athens, the rent climbs to 140.4% of the average Greek salary (62% in the EU), making the apartment impossible to afford without multiple income streams.
According to the KEFiM analysis, the roots of Athens’ housing crisis can be traced back to the extreme economic fluctuations of the past two decades. After a 43% decline in residential property prices in Athens during crisis-hit Greece of 2008 to 2017, the real estate market experienced a 86% recovery leading up to 2025, with prices ultimately exceeding pre-crisis levels.
This aggressive price surge was driven by several factors, such as a significant lack of new housing, tourism-driven demand, the proliferation of short-term rentals, Golden Visa investments and vacant apartments. All these combined to push prices upward for the limited, and aging, Greek supply.
But that’s only half the story, because the root cause of the housing crisis is wages, not rents. According to the KEFiM analysis, rental prices in Athens are now comparable to those found in the rest of Europe. What is causing the housing affordability crisis is the the paltry, average gross monthly Greek wage of €1,496 – less than half the EU average of €3,317.
