Sky-High Rents Threaten Livability on Greek Tourist Islands

For the sixth consecutive year, Greece ranks at the top of Europe as the country with the highest housing cost burden. Meanwhile, public employees, doctors, and educators face an insurmountable reality, unable to cover even basic housing expenses in tourist destinations where they are required to serve. The problem is more intense on islands due to limited supply and high demand. According to Indomio data, the average price for rental homes in March 2025 was €12.62 per square meter monthly, marking a 0.16% increase compared to April 2024 (€12.60). Over the past two years, the average price in the Cyclades region peaked in July 2024 at €13.60 per square meter. The lowest recorded price was in December 2024, averaging €11.82 per square meter. Recent data reveals a dual-speed market—some islands cater exclusively to high-end wallets, while others remain accessible to the average Greek worker. Mykonos retains its title as the most expensive island, with an average rental cost of €18.33 per square meter. This translates to over €1,000 per month for a small 60 sqm apartment, unaffordable for most permanent residents or seasonal workers. The housing crisis in Mykonos isn’t new; available long-term rentals are scarce, with most properties converted into short-term tourist accommodations like Airbnb. Santorini follows closely, another global brand of Greek tourism, at €16.50 per square meter, reinforcing its premium status. High returns from short-term rentals have significantly reduced the stock of homes for permanent living, leading to visible social impacts in health, education, and focus areas where staff shortages are reported. In Paros, which has rapidly developed with new tourism investments, prices reach €12.97 per square meter. On islands traditionally known for rural living, such as Kea (€9.05) and Naxos (€9.01), gradual increases reflect growing demand from Greek and foreign buyers. Syros, serving as the administrative hub of the South Aegean and a key transport node, averages €8.72 per square meter, indicating that even administrative islands aren’t immune to upward pressure. Andros remains more affordable at €6.93 per square meter, while inland areas of Naxos offer even lower prices at €5.99 per square meter. At the other end of the spectrum, islands with less tourist appeal, like Serifos (€3.94) and Sifnos (€3.66), still provide rental solutions with moderate prices for locals. Kythnos offers the lowest rate in the Cyclades at just €1.90 per square meter, remaining off the radar of major tourist flows despite being only two hours from Lavrio. Isolation and limited development explain these low rates, but this could change if announced tourism investments and infrastructure projects proceed. The significant variation in rental prices reflects inequalities within local communities, especially in municipalities where housing has ceased to be a social good and become a luxury. Much of the real estate, particularly on highly developed tourist islands, has exited the long-term rental market, resulting in areas where even nurses or teachers commute daily from other islands due to lack of housing. As summer approaches and the islands fill up, the housing issue is expected to resurface. Without institutional measures supporting long-term rentals, there’s a risk of establishing a discordant situation where islands are accessible only to tourists—not those who keep them vibrant year-round.