Greece is facing a housing affordability crisis shaped not only by a shortage of available homes but also by deep distortions in the real estate market, according to the IMF’s 2026 “Greece: Selected Issues” report. The IMF’s analysis highlights one of the most significant consequences of Greece’s tourism-driven growth model—the growing tension between the use of properties for tourism and the need for affordable long-term housing for residents.
Asking prices for homes in Greece have risen by about 85 percent since 2017, far outpacing the 47 percent increase in disposable income per person over the same period. The pressure intensified after the pandemic, with home prices rising by 61 percent since the fourth quarter of 2020. Rents, which initially moved more slowly, are now accelerating, with rent inflation reaching 10 percent in 2025.
The IMF describes Greece’s housing crisis as both social and economic. Higher housing costs weaken household consumption, reduce labor mobility, make it harder for young people to leave the family home, and may undermine the country’s ability to attract and retain workers.
IMF says Greece’s housing crisis is about availability, not just supply
One of the IMF’s most notable findings is that Greece has one of the highest housing stocks per capita in Europe. On paper, the country does not appear to lack homes.
The problem is that much of this stock is not available for use as a main residence. Around 35 percent of Greece’s housing stock is not geared toward primary residence usage, and roughly 12 to 13 percent of all homes are vacant. That means Greece’s housing crisis largely reflects an issue of allocation and effective use rather than an actual shortage of homes. Many of these are old, energy inefficient, legally complicated, tied up in co-ownership arrangements, or too costly to renovate.
As a result, the market may appear well supplied at the national level, while, in practice, there are not enough suitable homes in regions where demand is strongest, including Athens, Thessaloniki, major tourist destinations, and areas with concentrated economic activity.
IMF says short-term rentals add pressure
The IMF particularly focused on short-term rentals, which it identifies as a major part of Greece’s new tourism model. Utilizing data from INSETE, the Institute of the Greek Tourism Confederation, the report shows that short-term rental listings increased by 240 percent between 2017 and 2024. They rose from fewer than 100,000 to more than 230,000.
This represents about 3.5 percent of Greece’s total housing stock, 10 percent of non-occupied properties, and 29 percent of vacant homes. The impact, however, is highly concentrated. Short-term rentals are clustered mainly on tourist islands, in central Athens, and in Piraeus, exactly where housing pressure is already intense.
The IMF found that a higher concentration of short-term rentals is associated with rising home sale prices, particularly in areas with lower rates of homeownership. While the impact on rents appears more limited, it is still evident, as short-term rentals reduce the number of properties available to long-term tenants in high-demand markets.
At the same time, the IMF calls for careful evaluation of restrictions. Short-term rentals support tourism, local income, and economic activity, so any policy response must weigh both housing and economic effects.
IMF warns short-term rental curbs are not a cure-all for housing shortages in Greece
The IMF also cautions against assuming that restrictions on short-term rentals would automatically return large numbers of homes to the long-term housing market. Short-term and long-term rental properties are not always interchangeable, and the Fund notes that roughly two-thirds of vacant homes are secondary residences or vacation properties that owners occupy for part of the year.
As a result, stricter limits on short-term rentals may not lead to a significant immediate increase in housing available to long-term tenants. The IMF also warns that geographically targeted restrictions could simply shift demand and price pressures to neighboring areas rather than address broader affordability challenges. For that reason, the it calls for better data collection and careful cost-benefit analysis before such measures are implemented.
IMF links foreign demand to Greece’s housing crisis
International demand has also played a role in driving up property prices in Greece. Following the steep decline in real estate values during the country’s financial crisis, Greek property became increasingly attractive to foreign buyers, including members of the Greek diaspora. Depressed valuations, expectations of future capital gains, tax incentives, and the Golden Visa program all contributed to the influx of investment.
The IMF notes that Greece has since tightened Golden Visa requirements by raising minimum investment thresholds. However, it also points out that successive regulatory changes may have fueled bursts of purchasing activity, as investors rushed to secure eligibility under the previous terms before stricter requirements took effect.
The resulting price pressures have been unevenly distributed across the country. According to market data cited in the report, property values are significantly higher in the Greater Athens area (Attica) as well as in Thessaloniki and major tourist destinations compared to the rest of Greece.
IMF says Greece’s housing crisis affects tourism industry workers
The housing shortage is also increasingly intertwined with the functioning of Greece’s tourism economy. In regions where short-term rentals, elevated property prices, and limited long-term housing supply converge, finding affordable accommodation becomes a challenge not only for local residents but also for the workers on whom the tourism sector depends.
While the IMF does not specifically examine housing for seasonal workers in the tourism industry, its broader analysis points to the same underlying issue. As housing costs rise in high-demand tourist destinations, workers face greater barriers to relocating to areas where jobs are available. Over time, this can reduce labor mobility and undermine productivity, ultimately weighing on the competitiveness of an economy in which tourism remains one of the country’s most vital industries.
IMF finds Greece’s housing crisis is overburdening households
The issue of affordability is already severe for many households. The IMF estimates that in 2025, median housing costs, including mortgage payments, accounted for more than one-third of disposable income. Around two in five households are classified as overburdened, spending more than 40 percent of their disposable income on housing. A further 20 percent spend between 30 and 40 percent, placing them in a vulnerable financial position.
The strain is particularly acute for renters, low-income households, single-parent families, and individuals living alone. Renters in Attica and Central Macedonia, which includes Thessaloniki, face an especially elevated risk of excessive housing costs.
IMF urges Greece to bring empty homes back on the market
The IMF’s primary recommendation is to activate Greece’s large stock of unused housing. This would require a mix of incentives and disincentives, including renovation subsidies, energy-efficiency upgrades, tax incentives for long-term rentals, and policies that raise the cost of leaving homes vacant in high-demand areas.
The Fund broadly supports measures aimed at converting vacant properties or short-term rental units into long-term housing. At the same time, it argues that Greece must reduce the risks faced by landlords who rent to long-term tenants. Proposed measures include improved market transparency, a tenant registry, faster dispute-resolution mechanisms, and rent guarantee schemes for vulnerable households.
