Greece’s Housing Crisis: Key Drivers And Solutions

by THEFUTURE.TEAM

February 13, 2025

Greece is grappling with a severe housing crisis caused by a sharp decline in construction activity and reduced household purchasing power. What was once a typical housing market is now facing a significant shortage of new properties, exacerbating the affordability gap for many Greeks.

The Decline In New Construction

From 2001 to 2011, Greece built an average of 52,000 new homes per year, with 31,000 of them in Attica. But from 2011 to 2021, this dropped to just 26,000 homes annually, with a mere 4,500 in Attica. The housing supply has fallen by as much as 85%-90% compared to the pre-crisis period. Though construction activity has revived in recent years, it is still far from meeting demand.

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The Paradox Of Vacant Homes

One of the most perplexing aspects of Greece’s housing issue is the 700,000 vacant homes across the country, according to the latest census. While this large number suggests there should be enough supply, the crisis is fueled by other factors such as rising divorces and a growing number of single-member households, driving up demand.

Mortgage Decline And Shrinking Purchasing Power

Another critical indicator of the housing crisis is the dramatic drop in mortgages. In 2023, only 14,000 new mortgages were issued, compared to 115,000 in 2007. Meanwhile, disposable income in Greece is now at just 68% of the 2010 level, making it harder for people to afford homes. This has further increased pressure on the housing market as real estate prices continue to rise.

Urban Planning And Unused Land

Urban planning policies have also played a role in limiting housing supply. Expansive areas like Mesogeia and Eleonas in Attica remain largely unexploited, while restrictions on existing properties prevent efficient use of available land. These factors prevent the market from responding to growing demand.

Limited Real Estate Availability

Banks and servicers currently hold around 15,000 residential properties, but many of these are occupied, making it difficult to release them to the market. Though efforts to speed up their availability are underway, the overall supply remains limited.

Short-Term Rentals And Their Impact

While short-term rentals contribute to the housing shortage, they are not the primary cause. The real issue is that no new homes have been built in the past 15 years, and renovation costs have risen sharply. Additionally, high taxes and unpaid rents discourage owners from offering long-term leases.

Economic Disparity: Rising Prices vs. Stagnant Incomes

From 2015 to 2024, property prices increased by 5% annually, while average per capita income grew by just 3%. This disparity, coupled with the 20% annual growth in short-term rentals, has made homeownership increasingly out of reach for many Greeks.

Conclusion: A Call For Action

The housing crisis in Greece is multifaceted: insufficient new construction, limited availability of real estate, economic stagnation, and restrictive urban planning all contribute to the problem. Urgent policy changes, including incentives for new construction and better management of vacant properties, are needed to address the growing housing demand and restore affordability.

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Cyprus Income Distribution 2024: An In-Depth Breakdown of Economic Classes

by THEFUTURE.TEAM

December 24, 2025

New findings from the Cyprus Statistical Service offer a comprehensive analysis of the nation’s income stratification in 2024. The report, titled Population By Income Class, provides critical insights into the proportions of the population that fall within the middle, upper, and lower income brackets, as well as those at risk of poverty.

Income Distribution Overview

The data for 2024 show that 64.6% of the population falls within the middle income class – a modest increase from 63% in 2011. However, it is noteworthy that the range for this class begins at a comparatively low threshold of €15,501. Meanwhile, 27.8% of the population continues to reside in the lower income bracket (a figure largely unchanged from 27.7% in 2011), with nearly 14.6% of these individuals identified as at risk of poverty. The upper income class accounted for 7.6% of the population, a slight decline from 9.1% in 2011.

Income Brackets And Their Thresholds

According to the report, the median equivalent disposable national income reached €20,666 in 2024. The upper limit of the lower income class was established at €15,500, and the threshold for poverty risk was set at €12,400. The middle income category spans from €15,501 to €41,332, while any household earning over €41,333 is classified in the upper income class. The median equivalents for each group were reported at €12,271 for the lower, €23,517 for the middle, and €51,316 for the upper income classes.

Methodological Insights And Comparative Findings

Employing the methodology recommended by the Organisation for Economic Co-operation and Development (OECD), the report defines the middle income class as households earning between 75% and 200% of the national median income. In contrast, incomes exceeding 200% of the median classify households as upper income, while those earning below 75% fall into the lower income category.

Detailed Findings Across Income Segments

Upper Income Class: Comprising 73,055 individuals (7.6% of the population), this group had a median equivalent disposable income of €51,136. Notably, the share of individuals in this category has contracted since 2011.
Upper Middle Income Segment: This subgroup includes 112,694 people (11.7% of the population) with a median income of €34,961. Combined with the upper income class, they represent 185,749 individuals.
Middle Income Group: Encompassing 30.3% of the population (approximately 294,624 individuals), this segment reports a median disposable income of €24,975.
Lower Middle And Lower Income Classes: The lower middle income category includes 22.2% of the population (211,768 individuals) with a median income of €17,800, while the lower income class accounts for 27.8% (267,557 individuals) with a median income of €12,271.

Payment Behaviors And Economic Implications

The report also examines how income levels influence repayment behavior for primary residence loans or rental payments. Historically, households in the lower income class have experienced the greatest delays. In 2024, 27.0% of those in the lower income bracket were late on payments—a significant improvement from 34.6% in 2011. For the middle income class, late payments were observed in 9.9% of cases, down from 21.4% in 2011. Among the upper income class, only 3% experienced delays, compared to 9.9% previously.

This detailed analysis underscores shifts in income distribution and repayment behavior across Cyprus, reflecting broader economic trends that are critical for policymakers and investors to consider as they navigate the evolving financial landscape.

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