Study: Greece’s 2.2 Million Vacant Homes Key Factor in Housing Crisis

Millions of vacant homes may be playing a bigger role in Greece’s housing affordability crisis than previously thought, according to a new study by the Parliamentary Budget Office.

Released on Tuesday, the report “House Prices and Marketable Housing Supply in Greece: A Housing Utilization Perspective” argues that the country’s housing challenge is less about a shortage of dwellings and more about how many are actually available for rent or sale.

The findings come amid ongoing debate over the role of short-term rentals, foreign investment and limited housing construction in rising property prices.

However, the study suggests that the underutilization of existing housing stock is a major factor behind housing market pressures. With more than 2.2 million vacant dwellings recorded in the 2021 census, Greece has one of the highest shares of empty homes in Europe.

2.2 million homes sitting empty

Despite a 3.5 percent increase in Greece’s housing stock between 2011 and 2021, homes available for rent declined by 10.4 percent and properties available for sale fell by 33.1 percent, while inactive vacant homes increased to more than 1.8 million. The table reports the number and type of vacant dwellings in Greece, based on ELSTAT’s Population and Housing Census for 2011 and 2021. Inactive dwellings are defined as vacant dwellings that are neither offered for rent nor for sale. Utilization is defined as one minus inactive vacant dwellings divided by total dwellings. Source: Source: Parliamentary Budget Office / ELSTAT

According to the study, vacant homes accounted for 34.5 percent of Greece’s total housing stock in 2021. At the same time, property prices have risen sharply, increasing by 95.7 percent in Athens and 94 percent in Thessaloniki between 2018 and 2025.

The report notes that while the country’s housing stock expanded by 3.5 percent between 2011 and 2021, the number of homes available for long-term rental fell by 10.4 percent and properties available for sale declined by 33.1 percent. Meanwhile, so-called “inactive” vacant homes – properties neither offered for rent nor sale – increased by 6.1 percent to 1.81 million units.

Why homes stay off the market

The study points to a range of factors preventing homes from returning to the market, including inheritance disputes, unclear ownership status, legal complications, renovation costs, poor energy performance and limited demand in certain regions. According to the researchers, these constraints have reduced the effective supply of housing despite the country’s large overall housing stock, contributing to upward pressure on prices.

What about short-term rentals?

While short-term rentals remain a prominent focus of public debate, the study argues that their overall impact on the housing market may be more limited than commonly assumed.

Citing recent research, the report notes that properties used exclusively for short-term rentals account for just 0.4 percent of Greece’s total housing stock and 1.1 percent of vacant dwellings. The same research estimates that the overall impact of short-term rentals on rents does not exceed 1.8 percent.

The study nevertheless acknowledges that short-term rentals can intensify housing pressures in high-demand areas such as central Athens, Thessaloniki and popular tourist destinations, where they may reduce the supply of homes available for long-term residents.

Could more supply reduce prices?

Using a macroeconomic model tailored to the Greek housing market, the researchers estimate that underutilized housing stock may explain between 19.1 percent and 26.7 percent of the increase in house prices recorded in recent years. The study further suggests that if the share of vacant and inactive homes gradually returned to 2001 levels over a period of about six years, real house prices could decline by between 15.5 percent and 24.6 percent.

Policy recommendations

The study argues that addressing Greece’s housing challenge will require a combination of measures aimed at both increasing housing supply and bringing more existing homes back to the market.

Among its recommendations are accelerating the resolution of inheritance and cadastral disputes, providing tax incentives for long-term rentals, supporting property renovations, and introducing targeted regulation of short-term rentals in high-demand areas. The authors also call for policies that encourage new housing construction and public investment in affordable housing, particularly in urban areas where demand remains strong.

According to the study, Greece needs both more housing construction and more existing homes brought back into the market.

The study “House Prices and Marketable Housing Supply in Greece: A Housing Utilization Perspective” was authored by Stelios Giannoulakis, researcher at the Parliamentary Budget Office and lecturer at the Athens University of Economics and Business; Michalis Stavrakas, researcher at the Parliamentary Budget Office; and Yannis Tsoukalas, Coordinator of the Parliamentary Budget Office and Professor of Economics at the Adam Smith Business School of the University of Glasgow.

Source: Study: Greece’s 2.2 Million Vacant Homes Key Factor in Housing Crisis | GTP Headlines