Challenges for Young People in Greece to Reach Financial Independence

5. Housing policies

Abstract

This chapter examines the housing situation of young people in Greece, given the importance of housing as a pathway to financial independence. It reviews policy and institutional reforms aimed at improving access to housing, including recent initiatives to develop social and affordable rental housing, mobilise vacant housing, support first-time home buyers and strengthen housing governance.

5.1. Access to housing as a key pathway to financial independence for young people

Access to affordable housing remains a major obstacle to economic independence for many young people in Greece. The challenge reflects a combination of long-standing structural factors in the housing market – including a sharp decline in residential construction during the crisis, an insufficient supply of affordable housing in high-demand urban areas, an ageing housing stock, and limited access to mortgage finance – as well as wide‑ranging economic and employment challenges discussed in previous chapters. More recently, tourism-related pressures, rising demand – driven in part by an increase in the number of households despite overall population decline – and increases in rents and house prices have further reduced housing affordability, particularly for younger households and in high-demand urban centres.

In recent years, the government has taken important steps to strengthen its response to these challenges. Housing policy has evolved from a relatively limited and fragmented set of interventions towards a broader framework that combines support for home ownership, measures to increase the supply of affordable housing, and efforts to mobilise vacant or underutilised dwellings. Key initiatives include the My Home programme, and its successor, My Home II, which provide subsidised mortgages to eligible young people for a first-time home purchase; and the Social Antiparochi framework that aims to mobilise publicly-owned land through partnerships with private developers to construct new housing, including a share of affordable rental dwellings. The national housing policy package brings together a wide range of programmes and has been complemented by the development of a National Strategy for Housing Policy, currently under public consultation.

These initiatives represent an encouraging shift towards a more comprehensive housing policy framework, with increasing policy attention towards supply-side solutions as a complement to demand-side supports for households. Significant structural challenges remain, including supply constraints, regional imbalances in housing availability, and the large share of vacant or ageing dwellings requiring renovation. Addressing these issues will require sustained efforts and coordinated policy action over the medium to long term. The recent policy reforms and strategic planning process provide an important foundation, and their effectiveness will depend on successful implementation and continued action to expand housing opportunities for young people across Greece.

5.2. Challenges facing young Greeks in the housing market

Access to adequate housing represents a top concern among young people in Greece. According to the 2024 OECD Risks That Matter survey, around 70% of young people in Greece (aged 18‑24) expressed concern about securing adequate housing in the coming year, representing the fifth largest share in the OECD and well above the OECD average of 61% (Figure 5.1).

Figure 5.1. Around 70% of young people aged 18‑24 in Greece are concerned about being able to find/maintain adequate housing

Share of young people (18‑24 years old) who responded “concerned” or “very concerned” to the question, “Thinking about the next year or two, how concerned are you about not being able to find/maintain adequate housing”, 2024

Note: Respondents had the option of selecting: 1. Not at all concerned; 2. Not so concerned; 3. Somewhat concerned; 4. Very concerned; 5. Can’t choose / Not applicable.

Source: OECD (2025[1]), More Effective Social Protection for Stronger Economic Growth: Main Findings from the 2024 OECD Risks that Matter Survey, https://doi.org/10.1787/3947946a-en.

5.2.1. Difficulties to transition out of the parental home and purchase a first home

Transitioning out of the parental home and purchasing a first home remain difficult for many young Greeks. Across the OECD, Greece records the one of the highest rates of young people aged 20‑29 living with their parents (74%), after Korea, Italy, Spain and the Slovak Republic (Figure 5.2) (OECD, 2025[2]). In addition, the average age at which young people leave their parental home is 30.9 years, significantly higher than the EU-OECD average of 26.2 years (Eurostat, 2025[3]).

Figure 5.2. More than 7 in 10 young Greeks live with their parents

Share of young people (20‑29 year‑olds) living with their parents, 2024 or latest year available

Note: Data for Hungary, Korea, Switzerland and the United States refer to 2023; data for Canada, Chile, Mexico and the United Kingdom refer to 2022; data Australia refer to 2021; data for Iceland and Türkiye refer to 2020. The EU‑26 average does not include Malta.

Source: OECD Affordable Housing Database, indicator HM1.4 (OECD, 2025[2]), based on EU-SILC, HILDA (Australia), CIS (Canada), CASEN (Chile), KLIPS (Korea), ENIGH (Mexico), estimates provided by Statistics New Zealand (2021); and CPS (United States).

Despite the high overall home ownership rate, young Greeks often struggle to become homeowners. In 2017, close to 30% of youth aged 16‑34 years old owned their homes, compared to roughly 70% of those aged between 35‑64 years old, representing the second largest age gap in home ownership rates across 18 EU countries with available data (ECB, 2017[4]). Low rates of home ownership are due in part to restrictions to access to mortgage credit that emerged in the aftermath of the 2008 global financial crisis (Emmanuel, 2014[5]; Siatista, 2021[6]; Kourachanis, 2023[7]).The ability to take out a housing loan is a key determinant of young households’ home ownership (Cournède and Plouin, 2022[8]). Mortgage regulations have a greater impact on home ownership among young people than other groups due to their more limited capital, credit history, and employment stability (Andrews, Caldera Sánchez and Johansson, 2011[9]).

5.2.2. High spending on housing costs, particularly among renters

Young people in Greece must dedicate a large share of their income to cover housing costs, reflecting both high housing costs and low wages. On average, a young Greek aged 18‑29 spends over 60% of their income on housing, which is nearly double the EU average (Eurofound, 2025[10]). The challenge is even more pronounced in cities, where nearly eight in ten young Greeks spend over 40% of their disposable income on housing costs and are thus considered to be overburdened by housing costs (Eurofound, 2025[10]). Greece also has the largest share of young people in mortgage or rent arrears (18.9%) across EU countries, more than four times the EU average of 4.7% (Eurofound, 2025[10]).

Gaps in housing affordability and quality are key challenges in the private rental market. Among young people in Greece who do not live with their parents, close to 50% rely on the private rental market (OECD, 2025[2]). Yet dwellings in the private rental market tend to be unaffordable, with intensified competition in tourist-heavy areas that have experienced significant growth in short-term rental platforms. Indeed, Greece has experienced a surge in tourism over the past decade, with the number of visitors doubling from 15 million in 2010 to over 31 million in 2019 (UN Tourism, 2024[11]), with programmes to attract foreign investors and the growth of short-term rental platforms contributing to rising property prices and rental costs (Kourkouridis et al., 2024[12]; Kourachanis, 2023[7]; Pettas, Avdikos and Papageorgiou, 2024[13]).

5.2.3. Substandard housing and weak tenant protections

Substandard housing quality and weak tenant protections represent additional challenges for tenants. Law No. 5170/2025 establishes minimum operating and safety standards alongside monitoring and compliance mechanisms but applies only to the short-term rental market. Young people frequently live in overcrowded conditions (OECD, 2024[14]) and properties of inadequate quality (ETERON, 2022[15]). Many rental properties are affected by dampness and mould (Siatitsa et al., 2022[16]). In 2020, approximately 8% of tenants renting at market rates in Greece faced severe housing deprivation, above the EU average of 5.8% (EUROSTAT, 2025[17]). The country’s first tenants’ union was created in December 2024 to address challenges in the rental market.

Residential dwellings are nevertheless subject to a broader regulatory framework governing building legality, structural safety, fire protection, habitability and energy performance. In particular, the rental of residential properties requires the issuance of an Energy Performance Certificate, while dwellings must comply with applicable building, urban planning and construction regulations governing residential use.

5.2.4. Limited affordable options, given the shortage of social rental housing and student dormitories

The lack of social rental housing further constraints the housing options of young people. In 2012, Law 4062/2012 resulted in the end of the work-related social housing schemes operated by the Workers’ Housing Organisation (OEK), as part of the Second Memorandum of Understanding for Greece. By contrast, social rental housing makes up between 7‑8% of the total dwelling stock, on average in OECD and EU countries, though there are significant cross-national differences (OECD, 2025[2]). Efforts are underway in some municipalities to develop social rental schemes that rely on the private rental market as a source of below-market rate rental dwellings for lower-income households – known as rental intermediation schemes (discussed in Section 5.3.2). However, municipalities face a range of obstacles to develop new social rental housing, including a lack of a clear legal framework, limited authority, scarce suitable properties, high acquisition costs, and insufficient long-term financing.

5.3. Policies and institutional reforms to help young people access good quality affordable housing

There is growing momentum in Greece to help expand access to affordable housing solutions for young people, as reflected in the National Action Plan for Demography 2025-2035 (Ministry of Social Cohesion and Family Affairs, 2024[18]). The plan emphasises the use of inactive public and municipal real estate to meet the housing needs of people under 40, applying broadened income criteria to reach both the general population and young households, particularly couples. Under the same objective, the strategy also highlights the construction of modern student housing as a priority intervention.

Further, the government has introduced a range of measures to promote home ownership and incentivise property owners to lease private dwellings at below-market rates, including support that specifically targets young people. Current housing policies and programmes are summarised in Table 5.1 (Panel A: demand-side policies and programmes; Panel B: supply-side policies and programmes). As is common in many OECD countries, housing policy in Greece has traditionally focussed on promoting home ownership and providing demand-side support (e.g. subsidies, allowances), but efforts are underway to expand the supply, including long-term rental housing and other affordable housing solutions. This is a welcome development.

Table 5.1. Overview of housing policies and programmes available to young people in Greece

Policy/Programme	Description	Eligibility criteria
A. Main demand-side housing measures
My Home – Spiti Mou	The My Home programme collaborates with participating banks to provide low-interest or interest-free mortgage loans to eligible young people aged 25-39 for the purchase of a first home, for dwellings with a maximum value of EUR 200 000.	Age: 25‑39 years old Annual income: Between EUR 10 000 and EUR 16 000 for single applicants; up to EUR 24 000 for couples, increased by EUR 3 000 per child; and up to EUR 27 000 for single-parent households, increased by EUR 3 000 per child. Property ownership: Applicants must not own a dwelling that is suitable to cover their housing needs. Eligible dwellings: The property must be intended for use as a primary residence, be located in a residential area, be at least 15 years old, have a maximum surface area of 150 square metres and a maximum contract value of EUR 200 000. Loan amount: Up to 90% of the purchase price, with a maximum loan amount of EUR 150 000.
My Home II – Spiti Mou 2 (since 15 January 2025)	The My Home II programme collaborates with participating banks to provide low-interest mortgage loans of up to EUR 190 000 to eligible individuals and families aged 25-50 for the purchase of a first home.	Age: 25–50 years old. Annual income: Between EUR 10 000 and EUR 20 000 for single applicants; up to EUR 28 000 for couples, increased by EUR 4 000 per child; and up to EUR 31 000 for single-parent households, increased by EUR 5 000 for each additional child. Property ownership: Applicants, their spouse or partner, and their minor children must not own a dwelling suitable to cover their housing needs. Eligible dwellings: The property must be intended for use as a primary residence, have been completed by 31 December 2007, have a maximum surface area of 150 square metres and a maximum contract value of EUR 250 000. Loan amount: Up to 90% of the purchase price, with a maximum loan amount of EUR 190 000. For families with three or more children, 50% of the loan is interest-free.
Housing benefit – Epidoma stegasis	The Housing Benefit is a means-tested housing allowance for households renting their primary residence. It provides monthly financial support of between EUR 70 and EUR 210, depending on household composition, to help address housing insecurity and rental cost burden.	Target group: Households renting their primary residence. Income: Up to EUR 7 000 for a single-person household, increased by EUR 3 500 for each additional household member, up to a maximum annual income of EUR 21 000. Special provisions apply to single-parent households and households with unprotected children. Property assets: Taxable real estate assets up to EUR 120 000 for a single-person household, increased by EUR 15 000 for each additional member, up to EUR 180 000. Financial assets: Deposits and financial assets up to EUR 7 000 for a single-person household, increased by EUR 3 500 for each additional member, up to EUR 21 000. Residence requirement: Beneficiaries must legally and permanently reside in Greece and have a valid electronic rental contract for their primary residence.
Rent refund	The Rent Refund programme provides an annual refund corresponding to one monthly rent payment for tenants of primary and student residences, up to EUR 800 per lease (plus EUR 50 per dependent child for primary residences), subject to income and property criteria.	Target group: Tenants of primary residences and student accommodation. Income: Up to EUR 20 000 for single applicants; up to EUR 28 000 for couples, increased by EUR 4 000 per child; and up to EUR 31 000 for single-parent households, increased by EUR 5 000 per child. Property assets: Total family real estate assets must not exceed EUR 120 000 for single-person households, increased by EUR 20 000 for each additional household member, up to EUR 220 000. (Not applicable to student residence beneficiaries.) Rental contract: A valid electronic lease must be registered with the tax authorities. Benefit amount: Refund of one monthly rent payment, up to EUR 800 annually for a primary residence, increased by EUR 50 per dependent child, and up to EUR 800 annually for student accommodation.
Student Housing allowance – Stegastikó epídoma Foition	The Student Housing Allowance provides annual financial support to eligible students studying away from their place of permanent residence to help cover housing costs. The benefit ranges from EUR 1 500 to EUR 2 500 per student per year, depending on the location of study and whether the student shares accommodation with another eligible student.	Target group: Students enrolled in higher education institutions who study away from their place of permanent residence. Income: Annual family income up to EUR 30 000, increased by EUR 3 000 for each dependent child beyond the first. For students attending the University of the Aegean, the University of Western Macedonia and the Democritus University of Thrace, the income threshold is EUR 40 000. Academic requirements: Beneficiaries must meet the academic progress requirements established by the programme. Housing requirement: The student must rent accommodation in the city where they study and away from their family's primary residence. Benefit amount: EUR 1 500 annually for individual students and EUR 2 000 annually for students sharing accommodation with another eligible student.
B. Main supply-side housing measures available
Social Housing – Koinoniki Antiparochi	The scheme aims to expand the supply of social and affordable rental housing through the development of publicly-owned land and buildings in partnership with private developers. The scheme combines public assets with private investment to generate new housing supply, of which at least 30% of the housing units remain under public ownership and are allocated as social and affordable rental housing.		Detailed eligibility criteria not yet available. Eligible tenants will be selected by OPEKA based on social criteria, including household income, assets, family composition, and the age of children.
Renovate and rent – Anakainízo – Nikiázo	The Renovate and Rent programme provides grants covering up to 60% of eligible renovation costs, up to EUR 13 500, to homeowners who renovate vacant residential properties and subsequently make them available for long-term rental. The scheme aims to mobilise underutilised housing stock and increase the supply of rental housing.		Beneficiaries: Owners or usufructuaries of residential properties. Property status: The dwelling must have been declared vacant in tax returns for at least the previous three years. Property characteristics: Residential property of up to 100 square metres. Renovation works: Eligible expenses include renovation and repair works, as well as related materials and services. Rental obligation: The renovated dwelling must be leased for long-term residential use for at least three years following completion of the works. Financial support: Grant covering up to 60% of eligible renovation costs, up to EUR 13 500.
Renovate Housing programme 2026	The Renovate Housing Programme 2026 provides grants to low- and middle-income households for the renovation and light energy upgrading of residential properties. The scheme supports both the renovation of owner-occupied dwellings and the reactivation of vacant homes for owner-occupation or long-term rental, with the objective of increasing the supply of adequate and affordable housing.		Beneficiaries: Low- and middle-income households meeting programme income thresholds. Ownership rights: Applicants must hold ownership or usufruct rights in the dwelling (minimum 50% ownership for vacant dwellings). Eligible dwellings: Vacant dwellings or owner-occupied primary residences. Building characteristics: Dwellings must have been legally constructed, have a residential use, have been built before 1991, have a floor area of up to 120 m² (150 m² for large families) and hold an energy performance rating of C or lower. Income thresholds: Annual taxable household income ranging from EUR 18 000-35 000 (Category I) and EUR 25 000-45 000 (Category II), depending on household composition. Financial support: Grant rates of 70-80%, with additional bonus for households in islands and mountain areas, families with children and persons with disabilities. Grant rates may reach up to 95% for lower-income households. Rental commitment: Renovated vacant dwellings rented out must be made available for long-term residential rental for at least five years. Maximum eligible expenditure: Up to EUR 36 000 per dwelling. Programme budget: EUR 400 million, financed under the ESF+ 2021–2027 programme. Implementation period: Implemented during the 2021–2027 programming period, with calls for applications launched from 2026 onwards. Expected impact: Renovation of approximately 15 000–20 000 dwellings, increasing the supply of affordable and energy-efficient housing.
Save and renovate for young people – Exoikonomo -Anakainizo	The programme has two components: Save: Grant of between 40% and 90% of the cost of energy efficiency upgraded Renovate: Grant of 30% of the cost of performing a renovation.		Age: Beneficiary must be born between 1 January 1984 and 31 December 2005. Income: maximum EUR 30 000 (individual) or EUR 50 000 (family)
Coverage – Kalipsi	The Coverage programme provides housing through privately owned rental dwellings to young beneficiaries of the Minimum Guaranteed Income scheme aged 25-39. The programme combines rental intermediation and housing support measures to facilitate access to independent living and reduce housing exclusion among vulnerable young adults.		Age: 25‑39 years old Social status: Beneficiaries of the Minimum Guaranteed Income (formerly Guaranteed Minimum Income) Housing need: Individuals or households facing housing insecurity or at risk of housing exclusion. Residence: Legal residence in Greece. Housing support: Accommodation is provided through dwellings leased by the programme from the private rental market.
Housing and Work for the Homeless – Stégasi kai Ergasía yia tous astégous	The Housing and Work for the Homeless III programme provides housing, employment support and social integration services to homeless individuals and households. The programme combines rental subsidies for up to 24 months, coverage of housing-related expenses, employment support measures and psychosocial support services to promote long-term housing stability and social inclusion.		People experiencing homelessness or imminent risk of homelessness No age requirements The new call for proposals will include people living in precarious housing and people living in publicly provided housing. Target group: Individuals and households experiencing homelessness, including people living on the streets, in emergency accommodation, shelters, institutions or insecure housing situations. Residence: Legal residence in Greece. Selection: Beneficiaries are identified and supported through participating municipalities and social service providers. Support provided: Rental subsidy, coverage of housing-related expenses, employment support measures and psychosocial support services. Duration: Housing and employment support are provided for a defined period in accordance with programme rules.
Student dormitories – phititikés estíes	Student dormitories are provided to students studying in higher education. The Ministry of Education, Religious Affairs and Sports will expand the offer of student dormitories, as well as renovate existing student dormitories, in partnership with several universities.		Single students: Maximum family income of EUR 30 000 + EUR 5 000 for each dependent child in excess of one. The maximum family income is additionally increased by EUR 3 000 per sibling of the beneficiary enrolled in first-cycle education. Married students: Maximum family income of EUR 30 000 + EUR 5 000 for each minor child. Students above 25 years of age: Maximum annual individual income of EUR 10 000.
Pilot Social Housing in Athens and Thessaloniki – Kinonikí stégasi yia tis pléon eválotes omádes	The pilot programmes were introduced to provide social housing to people experiencing homelessness or risk of homelessness through a rental intermediation approach. Property owners are subsidised up to EUR 10 055 to renovate their apartment, on the condition that they participate in the programme for a minimum of four years. Beneficiaries pay a rent that is up to 70% of the market rate and will not exceed 40% of household income.		Beneficiaries must be part of the Housing and Work for the Homeless programme or receive a housing allowance, must not own a home, and must live in the municipality. Single‑parent families (new mothers) receive priority allocation

5.3.1. Support for home ownership

To help young people purchase their first home and reactivate the ageing housing stock, the government introduced a low-interest loan programme to help young people purchase older homes in need of renovations. The first phase of the My Home programme targeted young people aged 25 to 39, offering a state‑subsidised loan covering up to 90% of the property’s value. The loan was co-financed by the state and commercial lenders, with 75% funded by the state and the remaining 25% covered by a bank. To qualify for the programme, the property had to be built before 2007, have a maximum value of EUR 200 000, and not exceed 150 square metres. The beneficiary was responsible for selecting the dwelling, and the property underwent a comprehensive legal and technical assessment by the bank prior to the approval of the loan.

Despite initial concerns regarding the limited availability of eligible homes and budgetary constraints, strong demand led to a swift uptake of funds. The first phase resulted in over 8 900 approved applications; the second phase (My Home II), launched in January 2025 with a budget of EUR 2 billion, resulted in over 15 000 approved applications. The second phase broadened eligibility to individuals up to 49 years old, included larger families among the target groups and expanded the maximum property value to EUR 250 000. The programme aims to support approximately 20 000 beneficiaries and represents a significant public intervention to support home ownership for younger households.

In addition, the Save and Renovate for Young People programme, introduced in 2023, offers young homeowners financial support for energy efficiency upgrades and home renovations. Participants can apply to improve their home’s energy performance or combine energy upgrades with renovations, such as kitchen and bathroom refurbishments and appliance replacements.

5.3.2. Measures to expand the supply of affordable and social housing

Developing social and affordable housing for young people is a key measure under objective 15 of the National Action Plan on Demography 2025-2035, which focusses on strengthening the attractiveness of regions. In recent years, Greece has taken steps to develop a more comprehensive social and affordable housing framework, including the introduction of the Koinoniki Antiparochi (Social Compensation) scheme, the establishment of a social rental housing framework, the preparation of new social housing developments on publicly owned land through the Social Climate Fund, and the launch of the preparatory phase for a Unified Housing Policy Agency to serve as the main implementing body of housing policy in Greece. Together, these initiatives aim to expand the supply of social and affordable housing, mobilise public and private housing assets, strengthen housing governance and lay the first foundations for a social housing sector in Greece.

The Koinoniki Antiparochi (Social Compensation) scheme, introduced by Law No. 5006/2022 and amended by Law No. 5229/2025 aims to expand the social and affordable rental housing sector by leveraging publicly owned land and properties through partnerships with private developers. Under the framework, private developers may undertake housing projects through long-term contractual arrangements, financing and implementing construction works at their own cost, while at least 30% of the dwellings produced are reserved for social and affordable housing purposes. The government has made progress in establishing the legal and administrative foundations for implementation. Secondary legislation has enabled the transfer of an initial portfolio of public properties (Joint Ministerial Decision No. 9621/2026) and defined key contractual arrangements governing project development, management and oversight (Joint Ministerial Decision No. 9919/2026). Several key elements of programme design remain under development, including beneficiary eligibility criteria, allocation procedures, rent-setting mechanisms, and the operation of the relevant registries and management systems, which will have important implications for the accessibility, targeting, and affordability outcomes of the programme.

In parallel, Greece is developing a programme to develop new social rental housing on underutilised public land, including inactive military camps and other publicly-owned properties. The proposal, which is expected to seek support through the Social Climate Fund, would aim to contribute to expanding the supply of energy-efficient social housing and to the longer-term development of a permanent social housing stock. The programme is expected to support the development of approximately 2 300 social housing units in its initial phase, including projects in Athens, Thessaloniki and Patras.

In parallel, efforts are underway to mobilise the existing, underutilised stock as a source of affordable and social rental housing through rental intermediation schemes. Rental intermediation schemes – currently in use in at least 10 OECD/EU countries – aim to mobilise the existing building stock as a source of affordable and social rental housing by offering incentives to private and/or public actors to lease properties at below-market rates to eligible tenants. Such schemes may be operated by a Social Rental Agency (SRA), an intermediary that assumes some of the risks and responsibilities that property owners tend to associate with renting (which may include, e.g. managing rental contracts, rental payments, interactions with tenants, property damages caused by tenants, etc.), while facilitating access to affordable rental units to individuals who struggle to afford market-rate rents. While rental intermediation does not constitute a structural fix to the housing market, it can help address supply shortages of affordable and social housing in the short term as a complement to longer-term efforts to develop new affordable and social housing (discussed above); depending on the design of the scheme and the targeted dwellings, rental intermediation can also help address other housing policy objectives, such as the activation of vacant units or renovation of poor-quality flats (OECD, 2026[19]; OECD, 2025[20]).

There is already experience in Greece in the design and implementation of rental intermediation schemes. This includes, for instance, the government’s Coverage programme (Kalipsi), as well as pilot rental intermediation schemes in Athens and Thessaloniki (Kinonikí stégasi yia tis pléon eválotes omádes), developed with EU funding (Box 5.1). Further, the government has introduced tax exemptions to owners who make a property available after declaring it vacant for three years, effectively reducing their tax burden. This policy aims to encourage owners to put unused homes on the market, thereby increasing rental options. Similarly, the government’s Renovate‑Rent programme offers financial incentives to property owners to renovate their apartments and make them available for rent, in exchange for tax exemptions (Section 5.3.1). Complementing these measures, the recently introduced Renovate Housing Programme aims to support the renovation and energy upgrading of both owner-occupied and vacant dwellings, with the objective of improving housing quality, reactivating underutilised housing stock and increasing the availability of adequate housing. Together, these initiatives represent policy efforts to mobilise existing housing assets as a source of affordable housing in Greece.

Box 5.1. Pilot rental intermediation schemes in Greece

Coverage programme (Kalipsi)

The Coverage programme (Kalipsi) aims to encourage private homeowners to lease vacant properties through state management to recipients of minimum income benefits. Under this initiative, municipalities assign tenants to housing units, and the state guarantees rental payments. The programme builds on the EU-funded ESTIA initiative, which operated under a similar scheme to provide housing for refugees and migrants in privately owned homes. Following the conclusion of ESTIA, the government aims to incentivise homeowners from the ESTIA scheme to participate in the Coverage programme.

The Coverage programme has faced some implementation challenges, however. The legislation governing the programme limits its application to designated areas in 44 municipalities, thereby restricting the pool of participating property owners. Additionally, the increase in rental prices has made it increasingly difficult for the government to mobilise the private rental stock for social leasing, given that property owners can lease their flat for a substantially higher rate on the open market. Moreover, concerns from past negative experiences with the ESTIA scheme – including cultural misunderstandings and property damage – have deterred some property owners from participating, despite the introduction of new measures to cover large repair costs. The government is working to address some of these shortcomings, including: i) an increase in the amount of rent paid under the ESTIA scheme equal to the inflation rate of 2022, ii) guarantee of timely rental payments for three years, and iii) compensation for damage repair costs amounting up to four times the monthly rent.

Pilot schemes in Athens and Thessaloniki

Pilot social housing programmes in Athens and Thessaloniki, financed by the Resilience and Recovery Fund (RRF), have been introduced to test the potential for a systemic social housing solution that could be scaled up in other municipalities. The projects involve renovating vacant or underutilised buildings and then transforming them into affordable rental units for lease to eligible tenants.

• The rental intermediation scheme in Athens has targeted privately-owned apartments for renovation and social leasing, managed by the Athens Development and Tourism Promotion Company. The municipal company provides funding for renovations to be carried out at the initiative of the owner.

• The scheme in Thessaloniki (Kinonikí stégasi yia tis pléon eválotes omádes) has targeted apartments sourced primarily from the municipal and public housing stock. The SRA of Thessaloniki identifies vacant properties through the central electricity company by monitoring properties that have been disconnected from the grid, cross-referencing this data with water disconnections, and collaborating with the urban planning department of the University of Thessaloniki. The SRA leads the outreach and negotiations with the property owners and, following agreement, directly undertakes needed renovations through municipal services. The target tenants are expected to primarily be vulnerable groups at risk of homelessness.

Evaluations of the pilot rental intermediation schemes are underway, with lessons for programme design that could be relevant in scaling up schemes in other municipalities. Preliminary results suggest that Thessaloniki’s approach to undertake the renovations directly, on behalf of the owners (rather than provide financial support for owners to manage this aspect on their own, as has been the case in Athens) has been more effective in bringing idle units to the rental market; the project in Athens experienced delays in renovation works among some property owners that have stalled implementation progress. More broadly, both programmes have been constrained to some extent by the absence of a standardised framework for social housing, uncertainty over their long-term financial viability, and challenges to engage private landlords with appropriate incentives. Both municipalities have reported legal, administrative and financial hurdles to acquire and mobilise underutilised public housing stock for social purposes.

Source: Information provided to the OECD by Greek stakeholders during the OECD fact-finding meetings (4‑5 November 2024) and during subsequent discussions with stakeholders during an OECD mission to Athens (2‑3 February 2026).

To strengthen the institutional capacity to support the implementation and scaling-up of these new housing instruments, Greece has launched the preparatory phase for the establishment of a Unified Housing Policy Agency (Eniaios Foreas Stegastikis Politikis). The initiative which has been approved for financing under the Human Resources and Social Cohesion Programme 2021-2027 with a budget of EUR 3 million to support the institutional, administrative and operational development of the future Agency. The Agency is intended to become the principal executive body to implement housing policy in Greece, operating under the strategic direction of the General Secretariat for Demographic and Housing Policy. According to the approved project framework, its core functions will include co-ordinating and monitoring housing policy programmes, optimising programme implementation, analysing housing market trends and needs, and mobilising the housing stock for social and affordable housing purposes.

Together, these initiatives signal a growing policy focus on supply-side measures and a strengthening of the institutional capacity for affordable housing provision. The effectiveness of these efforts will depend both on key design aspects relating to eligibility and affordability, as well as implementation capacity, the availability and suitability of public land and properties, private-sector participation, and the extent to which affordable units are delivered at scale. Nevertheless, the creation of a legal and operational framework for social and affordable housing provides an important foundation for addressing housing needs over the longer term, provided that implementation is sustained and accompanied by broader efforts to expand housing supply and improve affordability.

5.3.3. Support for tenants in the private rental sector

The government has also introduced measures to address affordability concerns in the private rental market. To support the cost of housing, the government operates three demand-side measures for which young tenants may be eligible. First, the Housing Benefit (Επίδομα Στέγασης) in Greece provides EUR 70 per month for single‑person households, with an additional EUR 35 per month for each additional household member, up to a maximum of EUR 210. Second, low-income students, including those eligible for the Housing Benefit, may receive an annual benefit of EUR 2 000 (EUR 1 500 in Athens or Thessaloniki) if living alone, and EUR 2 500 (EUR 2 000 in Athens or Thessaloniki) if co-habitating with other students. Third, since November 2025, tenants and tenants of student residences, regardless of age, are eligible for an annual rebate equivalent to one month’s rent, up to a maximum of EUR 800, with an additional EUR 50 per child. This measure covers approximately 80% of renters.

The scope of the allowance provided by the Housing Benefit is limited, reaching just 0.2% of households in the bottom income quintile, placing Greece among the lowest in the OECD in terms of benefit coverage for low-income households. Averaged across several family types, the allowance amounts to 7.8% of the gross wage at the 10th percentile and 5.2% at the 50th percentile, compared to OECD averages of 8.4% and 2.2%, respectively (OECD, 2025[21]). The low coverage of the poorest quintile and the small difference in support between low- and middle‑income households in Greece suggest limited targeting towards the families most in need. In addition, this average conceals important differences across family types: while couples with children in Greece receive above‑average support relative to the OECD, employed single individuals and couples without children are often ineligible for the housing benefit.1 Uncertainty about their ability to meet housing costs may discourage young workers (whether single or in a couple) from deciding to live independently.

In addition, the government has taken steps to regulate the short-term rental sector, including a one‑year suspension of new property registrations in specific neighbourhoods in Athens. The suspension can be extended to other high-pressure areas, subject to review by the Ministry of Economy and Finance (Box 5.2).

Box 5.2. Targeted efforts to address the impacts of short-term rentals on the housing market in tourist-heavy neighbourhoods

To address concerns on the impact of short-term rentals on the housing market, the government implemented changes to short-term rental legislation, effective as of 1 January 2025 (Law 5162/2024). The primary measures include a one‑year suspension of new property registrations in specific neighbourhoods of Athens, such as Koukaki, Exarchia, Pagrati, and Petralona. The suspension can be extended and expanded to other high-pressure areas, subject to review by the Ministry of Economy and Finance.

Additionally, the government is intensifying efforts to regulate the sector. For instance, Article 3 of Law 5170/2025 introduces minimum operating standards and safety requirements for short-term rentals, mandating that properties provide natural lighting, ventilation, heating or air conditioning, and fire safety certifications. Eligible properties include primary residences and repurposed dwellings, with inspections carried out by the Ministry of Tourism and the Independent Authority for Public Revenue. Violations, such as failing to register properties (a requirement for short-term rental owners since 2016) or renting without a Property Registration Number (PAR), will result in fines.

In parallel, the government is offering incentives to encourage property owners to transition to the long-term rental market. Property owners who convert a property from a short-term to a long-term lease (with a minimum lease term of three years, as shown in the electronic lease) between 9 August 2024 and 31 December 2025, will be eligible for a three‑year income tax exemption on rental income, applicable to properties of up to 120 square metres.

5.3.4. Housing support for university students

With approximately 450 000 students eligible for accommodation, the Ministry of Education, Religious Affairs and Sports, in partnership with universities and INEDIVIM, provides roughly 13 000 free student dormitory beds nationwide. Additionally, INEDIVIM has agreements with hotels to host students, renting hotels as needed to accommodate demand when dormitories are full (300 students in 2024). University students are assigned a spot for one year, after which they must reapply. The dormitories are primarily reserved for students from vulnerable families and are provided free of charge, including meals (previously, students had to contribute a small share of the rent).

To address the growing demand for student dormitories, the government is collaborating with various universities and, through public-private partnerships, aims to add approximately 10 000 additional units by 2027‑2028 across six universities nationwide, representing an investment of more than EUR 650 million. In parallel, the government is financing the renovation of student dormitories at 12 universities, alongside targeted property acquisitions in peripheral cities – such as Tripoli – and on islands lacking student residences, including Rhodes, Samos, Corfu and Zakynthos. Furthermore, energy and functional upgrades for 18 student dormitories, co-funded by the Social Climate Fund, are underway. These investment plans are encouraging, even if demand will still far exceed supply.

5.3.5. Institutional reforms in the responsibility for housing policies

Several recent institutional reforms to the institutional architecture for housing policy in Greece are also worth noting. Responsibility for housing policy has been consolidated within the Ministry of Social Cohesion and Family Affairs, and Law No. 5229/2025 established new administrative structures dedicated to demographic and housing policy. These reforms aim to strengthen coordination across housing, social inclusion and demographic objectives and provide a more coherent institutional basis for housing policy development and implementation.

The reforms have been accompanied by efforts to expand Greece's housing policy framework, including through key initiatives described above, and the development of Greece's first National Housing Strategy. In parallel, the Ministry has also taken steps to improve the evidence base for policymaking, including through the mapping of publicly-owned housing assets, and to increase transparency and accessibility through the creation of a centralised housing information portal. Taken together, these developments represent a welcome effort to strengthen housing governance in a historically fragmented and underdeveloped policy area, yet it is too early to assess their impact on housing affordability.

5.4. Conclusions

Young people in Greece continue to face significant barriers to accessing affordable housing. These challenges reflect a combination of factors, including the legacy of the crisis on the housing market, persistent affordability pressures relative to incomes, and tourism-related pressures in high-demand areas. While these pressures are the result of long-term structural trends, they have important implications for young people's economic independence, residential stability, and family formation.

The government has introduced a broad range of policy and institutional reforms to address many of these challenges, including measures to expand the supply of affordable and social rental housing, mobilise vacant housing, support first-time home ownership, and strengthen housing governance. These developments represent an important shift towards a more comprehensive housing policy framework and provide a foundation for further progress.

It is too soon to fully assess the impacts of these reforms on housing affordability and access, notably for young people. Implementation will be key, and the effectiveness of these initiatives will depend on adequate resources, strong institutional capacity, and effective coordination across levels of government and with private and non-profit actors to translate ambitions into sustained actions and measurable results. Continued monitoring and evaluation will be needed to assess outcomes, refine policy design where necessary, and ensure that interventions reach the young people most in need.

References

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[18] Ministry of Social Cohesion and Family Affairs (2024), National Action Plan for Demography 2025-2035, https://minscfa.gov.gr/en/demographic-policy/national-demographic-action-plan/ (accessed on 10 July 2025).

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Note

← 1.  To be eligible for the housing benefit the total reference income for a single‑person household cannot exceed EUR 7 000 in 2025. For comparison, the minimum wage in Greece as of 1 January 2025 was EUR 11 620 corresponding to a reference income for the housing benefit calculation of EUR 10 067 (based on OECD Tax-benefit model). To be eligible for the housing benefit a single employed individual would have to work part-time at the minimum wage.