IMF Urges Greece to Activate 12%-13% Vacant Homes as Housing Costs Outpace Incomes
Updated
Updated · Greek Reporter · Jun 2
IMF Urges Greece to Activate 12%-13% Vacant Homes as Housing Costs Outpace Incomes
1 articles · Updated · Greek Reporter · Jun 2
Home asking prices in Greece have jumped about 85% since 2017, versus a 47% rise in disposable income, prompting the IMF to warn that affordability is deteriorating into a broader social and economic problem.
Around 12%-13% of homes are vacant and roughly 35% of housing stock is not geared to primary residence use, leading the IMF to argue the crisis is driven more by allocation and availability than by an absolute shortage.
Short-term rental listings rose 240% between 2017 and 2024 to more than 230,000, concentrating pressure in Athens, Piraeus, tourist islands and other high-demand areas where sale prices have climbed fastest.
Two in five households now spend more than 40% of disposable income on housing, while median housing costs exceed one-third of income and rent inflation reached 10% in 2025.
The IMF recommends renovation subsidies, energy-efficiency upgrades, tax incentives for long-term rentals and penalties for leaving homes empty, while cautioning that blanket short-term rental curbs alone may not quickly free up housing.
Greece is banning short-term rentals for its visa investors. Will this truly curb soaring rents or just create new real estate loopholes?
With 800,000 homes sitting empty, what is the real barrier to turning vacant properties into affordable housing for Greeks?
Can Greece's tourism-fueled economy survive if its workers can no longer afford to live in the cities they serve?
Greece’s Housing Market in 2026: IMF Sounds Alarm as Affordability Hits Crisis Levels
Overview
Greece is facing a severe housing affordability crisis in 2026, marked by a rapid rise in housing costs that puts secure and affordable accommodation out of reach for many citizens. This situation is driven by a limited supply of new housing, which is made worse by a shortage of skilled workers and low participation of young people in construction. As demand for suitable homes far exceeds supply, the crisis poses serious economic and social risks. The IMF has issued an urgent call to action, urging Greece to address these deep structural and policy challenges to restore housing affordability and stability.