The truth about Greece’s “soaring” rents: Empty homes, not short-term rentals, are driving the crisis

A new study by the Athens University of Economics and Business is reshaping the conversation around Greece’s housing crunch. According to the findings, properties used exclusively for short-term rentals make up just 0.4% of the country’s total housing stock – far too little to have any meaningful impact on rents. By contrast, more than 2.28 million homes, or 34.5% of the total, are not used as primary residences.

The category of “empty homes” covers a wide range: secondary or holiday properties, homes for sale or long-term rent, buildings under construction, and abandoned or unused units. While not all are immediately available to the rental market, the figures highlight a structural failure to make full use of existing housing. In central Athens, short-term rentals account for just 1.1% of the housing stock, while empty homes exceed 25%.

At the same time, the government has frozen the issuance of new property registration numbers (AMA) for short-term rentals in several central Athens districts, with the option to extend the measure to other areas. Under new rules, a “cap” will be imposed wherever the ratio of short-term to long-term rentals tilts too heavily toward the former, with data tracked down to individual postal codes.

Market data also shows that shrinking supply and rising rents are not confined to areas with a strong short-term rental presence. In Peristeri, for example, the supply of small apartments has fallen by 38.5% in the past year, while rents have risen by 7.7%. Similar patterns appear in Nea Ionia and Zografou, affecting even traditionally “affordable” neighbourhoods. (edited) [4:10 AM] The picture that emerges is clear: short-term rentals are not the main driver of high rents in Greece. The real issue lies in the vast number of underused homes and the absence of policies to bring them back into productive use.

Do you think bringing empty homes back onto the market could help stabilise rents in your area?