Greece has emerged as the most burdened country in Europe when it comes to housing costs, with soaring rents and limited affordability placing increasing pressure on households.

According to recent data from Eurostat, 28.9% of the population spends more than 40% of their income on housing—far above the European Union average of 8.2%. This places Greece at the top of the list in terms of housing cost strain among EU countries.

The situation is particularly acute in urban areas, where the figure rises slightly to 29.1%, while rural regions are not far behind at 27.7%. The findings highlight a nationwide issue, affecting both cities and the countryside.

Rents Rising Faster Than Incomes

Greece recorded the second-highest annual rent increase in the EU in 2025, with prices climbing by 10.1%, second only to Croatia. This sharp rise contrasts with the broader EU trend, where rents increased by an average of 3.2%.

In the capital, the affordability gap is especially stark. The average rent for a one-bedroom apartment now consumes 70.2% of the average monthly salary, compared to 33.8% across EU capitals. For a two-bedroom apartment, the figure jumps to 93.6%, more than double the EU average of 45.6%.

These figures underscore a growing imbalance: while rents are approaching European levels, wages remain significantly lower.

What’s Driving the Surge?

The increase in rental prices is attributed to a combination of factors:

• Rising demand linked to tourism and short-term rentals
• Limited construction of new housing during the economic crisis years
• Increased foreign investment in real estate
• A large number of vacant properties
• Economic recovery boosting overall demand

Over the long term, Greece’s rental market has experienced significant fluctuations. After strong growth in the early 2000s, rents declined sharply between 2011 and 2018, stabilized until 2021, and have been rising rapidly since 2022.

Meanwhile, property prices—especially in Athens—have rebounded strongly and now exceed pre-crisis levels.

The Most and Least Expensive Areas

Rental prices continue to climb in early 2026, with the highest demand and costs concentrated in popular and urban areas.

Among the most expensive locations are southern suburbs and island regions, followed by central Athens, northern suburbs, and the country’s second-largest city.

Within the greater Athens area, the most expensive districts include coastal and upscale neighborhoods, where average asking rents can exceed €20 per square meter. Other high-cost areas include central and northern residential zones.

On the other end of the spectrum, more affordable regions are found mostly in less densely populated areas, where rental prices can fall below €4 per square meter. Within the wider metropolitan area, lower-cost neighborhoods offer rents closer to €7 per square meter.

A Growing Affordability Crisis

The data points to a sustained deterioration in housing affordability, as rent increases continue to outpace income growth. For many households, especially in major cities, finding reasonably priced housing has become increasingly difficult.