In a new report, the European Commission proposes the creation of a national housing observatory for Greece as a measure to address the housing crisis, while estimating that the housing shortage in our country will reach 110,000 by 2035.
The Commission’s Spring Package of the European Semester, published yesterday, includes for the first time a dedicated chapter with housing recommendations for member states, reflecting the vast scale of the housing problem across Europe.
In the case of Greece, Brussels emphasizes that the rising cost of housing in our country is straining living conditions, particularly for vulnerable social groups.
The percentage of households facing energy poverty is above the EU average and continues to rise. For 28.9% of the population, housing costs exceed 40% of total household disposable income (compared to 8.2% in the EU), while increases in housing prices are among the highest in the EU.
“Overall, housing affordability has deteriorated. Rents are not subject to regulation, and the limited support measures for tenants have little impact,” the Commission emphasizes.
Market transparency
Of particular interest are the Commission’s proposals calling for greater market transparency and a more centralized government policy.
“Given the worsening housing challenges, responsibility has been assigned to the Ministry of Social Cohesion and Family, with the assistance of an interministerial coordinating body. Within the framework of the Recovery and Resilience Facility (RRF), a comprehensive housing strategy has been developed. However, it remains necessary to establish a national housing observatory to monitor the housing situation of vulnerable social groups,” it is emphasized.
Market forces are insufficient
As for current market forces, no solutions are on the horizon.
Housing prices are rising steadily at a rate higher than the growth in household income, while at the same time many factors are limiting the supply of housing stock.
On the supply side, the construction sector is unable to fill the gap due to rising costs of building materials and a shortage of labor.
The growth of short-term rentals is reducing housing availability in metropolitan areas and high-demand tourist destinations. Investment in the housing stock remains limited relative to the existing investment gap.
In fact, the Commission went so far as to make a projection, estimating that the housing construction deficit will reach 110,000 homes by 2035.
It further states that the country’s strategy will be based on existing policy actions, the formulation and implementation of the necessary institutional and operational conditions—such as the establishment of implementing bodies for the provision of social housing, the analysis of housing data and the development of relevant policies, as well as cooperation with local authorities. However, these steps are not sufficient.
“A comprehensive legislative framework for social housing is also required to support investments in affordable and energy-efficient housing, as well as in social housing for vulnerable households. This comprehensive strategic framework must be implemented and carried out in a coordinated manner to effectively address housing-related challenges throughout Greece,” the report adds.
* See the report in the Related Materials section.