In our previous article on the Retroactive Business Tax, we referenced the misleading notion that short-term rentals (STRs), such as Airbnb, are the main cause of the housing crisis—not just in Greece, but globally (you can read more here.
However, a comprehensive new study now sets the record straight regarding whether—and to what extent—Airbnb and other short-term rental platforms are responsible for, or even significantly influence, the housing crisis.
The short answer is: “Hardly at all!” Let’s examine the facts in more detail.
The research that reveals the truth
The Athens University of Economics and Business (AUEB), Greece’s leading public university for economics, recently conducted a research study that reached some very interesting conclusions regarding the housing crisis, the shortage of properties, and the impact of short-term rentals on housing and the economy.
The real numbers behind the narrative
According to the AUEB study, the statistics are revealing—especially for those convinced that short-term rentals are the reason they cannot find a home with rent less than an entire monthly salary.
- Only 4% of all homes in Greece are used exclusively for Airbnb. In absolute terms, this translates to approximately 25,600 properties out of a total of 6.4 million.
- In central Athens, exclusive short-term rentals account for 1%, or roughly 1,200 homes.
- All STR properties combined represent just 9% of the total housing stock.
- In Athens, 25% of homes are vacant—one in four properties is unused. Within the Municipality of Athens, this figure rises to 28%.
- On the islands, the vacancy rate can reach as high as 50%.
- Greece has over 28 million homes that remain empty and unused.
- To put it in perspective, for every property listed on Airbnb, approximately 90 homes remain vacant.
- Greece ranks third in the European Union for vacant homes, with a rate of 5%.
- 98% of individual hosts in Greece manage one or two properties. The average monthly income per property is €628, indicating that it is not a primary source of income, but rather a supplementary one, helping households meet rising financial obligations.
- Of these hosts, only 9% would consider renting their property long-term, while 23% would prefer to leave it empty. Most occasionally use their properties themselves.
The impact of short-term rentals on the economy
Tourism is considered Greece’s most important industry. From “rooms to let” on islands previously unknown outside Greece, to traditional and luxury Airbnb accommodation, it is clear that supply and demand for accommodation have changed dramatically in recent years.
STRs have grown not only in capital cities but also in areas lacking sufficient hotel infrastructure to meet demand. This is particularly true on the islands, where hotels are unable to accommodate the increasing numbers of tourists, who turn instead to short-term rentals.
The contribution of short-term rentals to the Greek economy is significant, providing solutions to a number of problems:
- More than 10,000 jobs have been created, directly in management and cleaning, but also indirectly in catering, transport, retail, entertainment, and more.
- In 2023 alone, short-term rentals contributed €3.25 billion to GDP, compared to €0.56 billion in rental expenditure—a share between 4.5% and 5.4%.
- That same year, while hotel occupancy reached 90% during the summer months, Airbnb properties absorbed the additional demand for accommodation.
- Short-term rentals accounted for 7% of total overnight stays in Greece, with only 17% in Attica. Unsurprisingly, the highest rates are found in areas with limited hotel infrastructure.
Rents in the stratosphere
As the above figures demonstrate, STRs are not responsible for the dramatic rise in rental prices.
The fact that only 60,000 new homes have been built since 2015—with 40% of these remaining vacant—combined with reduced construction activity during the recession and a complete halt throughout the pandemic, has certainly played a significant role.
According to the study, Greece has the lowest housing investment activity in the Eurozone, with investments amounting to just 2.3% of GDP.
Expert opinions
The research into the impact of STRs on the housing crisis has provided clear, concrete data—giving us a realistic picture based on actual numbers and percentages.
Professor Georgios Doukidis of the Athens University of Economics and Business stated:
“Short-term rentals in Greece are an integral part of the country’s tourism industry, making a significant contribution to the national economy and supporting thousands of jobs. They meet the growing demand for accommodation across Greece, offering essential alternatives for both foreign and Greek tourists. The overwhelming majority of providers are private individuals with a single listing, which provides a small but vital income for many Greek families. Short-term rentals account for only 2.9% of the total housing stock and do not significantly affect housing supply.”
Valentina Reino, Policy Manager for Airbnb in Greece, stated:
“Short-term rental accommodation (STR) is a key pillar of the Greek economy and a vital source of income for hundreds of thousands of hosts. According to the findings of a recent study, short-term rentals are not responsible for the housing crisis in our country. On the contrary, they help revitalise neighbourhoods, absorb peak tourist demand, and distribute tourism outside the high season and away from crowded destinations, in areas where there are no hotels. Restricting short-term rentals without proper evidence would have negative consequences for both Greek citizens and the local economy.”
What could be the solution?
With salaries at their current levels—the minimum wage is €880 gross, meaning a take-home pay of €710—even paying €240 in rent (a scenario bordering on science fiction) would consume a third of one’s salary, specifically 35.2%, the highest rate in the European Union. Income levels for 2025 are the same as they were in 2000—25 years ago!
Some steps may have been taken through housing programmes such as “My Home” and “My Home II”, but the properties available are far below expectations, and prices are much higher. People are trying to turn to home ownership to escape the burden of rent, but bank interest rates make this dream very distant—and, with the salaries mentioned above, it is clear that most people cannot save even the smallest amount.
Available properties are far too few for the ever-increasing demand. Construction of affordable housing must be encouraged, vacant properties should be utilised, and incentives offered to owners to choose long-term rentals over STRs. There should also be a cap on rent increases, as the market is currently completely unregulated.
If the authorities give the housing crisis the attention it should have received years ago, and decide to address it seriously—instead of blaming whatever is most convenient—there is hope for recovery. Housing is one of the fundamental and non-negotiable human rights, and more action should be taken to support it, not undermine it.
By choosing Sparrow to manage your property, you can be assured of transparency, accurate information, and sustainable utilisation through responsible short-term rental.
