Housing Crisis: The Imbalance Between Supply and Demand in Real Estate – What Owners Think About Rent Refund Measures

The problems faced by citizens remain ‘unsolved puzzles’ as government measures seem insufficient to reverse the situation affecting thousands of households forced to enter the real estate market for rental properties. The biggest challenge today is finding housing that is both economical and dignified, covering family needs without straining the household budget. Despite the government’s multifaceted measures, issues persist. Among these is the annual rent refund announced by the Prime Minister and detailed by the economic committee on Tuesday (25.04.2025). Industry experts say this measure, while moving in the right direction by increasing renters’ purchasing power without disrupting market laws, remains inadequate and incomplete. They argue it provides only minimal support, insufficient to overturn the housing crisis. Historically, rentals were agreements between landlords and tenants; now, new rents are dictated by what the market offers, leaving little room for landlords to benefit from rent increases. Market laws governing supply and demand shape Greece’s housing problem. Experts highlight the lack of sufficient available rental properties as a key issue, compounded by high taxation discouraging many owners from renting out their properties. Additionally, many properties acquired during the debt crisis by banks and funds remain closed as they prioritize sales over rentals. Furthermore, the aging housing stock requires costly renovations for energy efficiency and general habitability. Government measures aimed at encouraging property re-rental have so far been ineffective. Data from the Bank of Greece shows a continuous rise in rents since 2018, with an increase of 53% over six years compared to inflation and wages. Even if wage predictions materialize, rents would need to freeze or decrease significantly to restore balance.