Housing affordability is one of the biggest challenges facing European economies, said Bank of Greece Governor Yannis Stournaras, speaking at the Dubrovnik Economic Conference in Croatia.
As he pointed out, housing prices and rents in Greece have risen significantly in recent years, while the burden of housing costs on households is among the highest in the Eurozone. At the same time, the market continues to be characterized by an imbalance between supply and demand, as construction activity remains below pre-crisis levels, while demand is being driven by both rising incomes and foreign investment and tourism.
Mr. Stournaras emphasized that the housing crisis is not only a social problem but also a macroeconomic risk, as it affects labor mobility, productivity, and demographic trends. At the same time, he advocated for the use of macroprudential tools that would facilitate access to housing for young people and first-time homebuyers, while simultaneously curbing speculative demand.
However, he made it clear that central banks cannot solve the problem on their own, emphasizing that the real solution lies in increasing the housing supply, improving urban planning procedures, and making more effective use of the existing housing stock.