Government measures adopted so far to address Greece’s housing crisis have proved ineffective, and in some cases have worsened market distortions, according to a new study by the think tank Dianeosis and the Foundation for Economic and Industrial Research, known as IOBE.
 
Programs subsidizing mortgage interest rates for home purchases, including “My Home I and II,” have contributed to rising sale prices, reinforcing an upward trend instead of easing pressure, the study said. Researchers described the housing problem as complex and warned that it will require a combination of policies over several years, as shortages in supply cannot be resolved quickly.
 
Delays have been particularly evident in the development of social housing. A legal framework for social housing through land-for-flats arrangements was passed in 2022, but limited consultation with the market forced the government to revise the rules. Changes were adopted only at the end of 2025, and in 2026 there is still no sign of tenders for social housing projects using public property.
 
In September 2024, Prime Minister Kyriakos Mitsotakis announced at the Thessaloniki International Fair that the former CHROPEI industrial site would be converted into a social housing complex. Nearly 18 months later, the property remains unused, with no procedures launched. More recently, the government announced plans to redevelop three former military camps in Athens, Thessaloniki and Patras, with part of the housing stock earmarked for social purposes.
 
Meanwhile, housing costs continue to rise faster than wages. According to Eurostat data cited in the study, Greek households devoted 35.5% of their disposable income to housing-related expenses in 2024, including rent, mortgages, energy costs and property taxes on primary residences. The European Union average was 19.2%.
As a result, 10.4% of households in Greece faced difficulties meeting housing obligations in 2024, the highest rate in the EU. The analysis notes that “failure to meet housing obligations on time is a widespread problem and a significant factor of divergence from other European Union countries.” The EU average stood at 3.1%. Spain second at 5.8%, followed by Finland at 5.7%, Ireland at 5.6% and France at 5.4%. Romania recorded the lowest rate, at 0.4%.
The study also highlighted sharp imbalances in housing finance. Mortgage lending remains far below pre-crisis levels.
 
 
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