Europe’s housing affordability gap widened over the past decade, with Greece among the countries where home prices pulled further ahead of incomes, according to new European Union figures. House prices rose faster than household income in 17 of the EU’s 27 countries between 2015 and 2025, Eurostat reported Nov. 9.
In Greece, the house price-to-income ratio climbed 22.5% over that period, compared with a 6.8% increase across the bloc. The country also recorded the EU’s highest housing-cost overburden rate in 2025. Some 26.4% of residents lived in households spending at least 40% of disposable income on housing, against an EU average of 7.7%.
Portugal saw the sharpest deterioration in the price-to-income measure, up 60.8%, followed by the Netherlands at 34.3%. Hungary, Czechia and Spain also recorded increases exceeding 20%. Romania moved in the opposite direction, with its ratio falling 42.8%. The measure tracks price changes relative to incomes, not which country has the most expensive homes.
Greece illustrates Europe’s housing affordability gap
Greece’s pressures have continued into 2026. Apartment prices increased 5.5% in the second quarter from a year earlier, according to the Bank of Greece. Prices rose 5% in Athens and 4.7% in Thessaloniki, even as the pace of national increases slowed from 2025.
An International Monetary Fund review said Greece’s housing market suffers from a mismatch between available properties and the homes people need. About 35% of dwellings are not used as primary residences, including holiday homes and vacant buildings. Many empty properties require costly repairs, limiting the number ready for long-term occupancy.
Rising rents, borrowing costs and difficulty saving for a down payment have added to the strain. Ronan Lyons, an economist at Trinity College Dublin, cautioned against treating price-to-income changes as a complete measure of affordability. “Neither tells us how affordable housing is today,” he said.
Housing shortages push governments toward new measures
The IMF has found that housing supply constraints are playing a growing role in European price increases. It said lower-income urban renters face some of the greatest pressures, while financially vulnerable tenants have become less likely to move into homeownership.
Governments are responding with housing programs and new rules. The European Commission introduced an affordable housing plan in December 2025 to promote construction, investment and assistance for households under pressure. In September, it proposed legislation allowing authorities to restrict certain short-term rentals in areas facing housing shortages.
In Greece, officials announced plans on Thursday for about 2,400 social homes on former military sites, with rents targeted at 50% to 60% of market levels. The first contractor tenders are expected in early 2027, according to the ministry. The development is part of Greece’s efforts to increase its supply of affordable rental homes.
