kathimerini.gr
Greece Faces Europe's Worst Housing Crisis Amid Soaring Costs
In 2024, Greek households spent 35.5% of their disposable income on housing, the highest in the EU, due to rising rents, energy costs, and mortgage rates, despite government initiatives totaling €6 billion to increase housing supply.
- How have rising rents and interest rates contributed to the worsening housing affordability crisis in Greece?
- Soaring rents (up 5.6% nationally, 7.6% in Attica in 2023-2024) and high energy costs offset any income boosts from salaries or tax cuts, exacerbating the housing crisis. Rising interest rates on variable-rate mortgages further intensified the problem.
- What is the extent of Greece's housing affordability crisis compared to the EU, and what are the immediate consequences for Greek households?
- Greek households faced the highest housing cost burden in the EU in 2024, allocating 35.5% of their disposable income to housing, exceeding the EU average of 19.2% and marking a slight increase from 35.2% in 2023. This is despite a decreasing trend across the EU.
- Can the Greek government's planned housing initiatives effectively address the root causes of the crisis, and what are the potential challenges?
- The Greek government's 40 housing initiatives, totaling €6 billion, aim to increase housing supply by utilizing 1,000 public properties for up to 10,000 homes, and 6,500 more for 25,000 homes long-term. However, experts like Lefteris Potamianos criticize the lack of market dialogue in policy-making, hindering effective solutions.
Cognitive Concepts
Framing Bias
The article frames the housing crisis in Greece as overwhelmingly negative, emphasizing the high costs and lack of improvement. While the statistics support this, the framing lacks balance, with limited positive counterpoints. The headline (if there was one) likely emphasized the negative aspects, setting a pessimistic tone from the start. The inclusion of government initiatives towards the end feels like an afterthought, diminishing their potential impact.
Language Bias
The language used is largely factual and descriptive, relying heavily on statistics. However, words and phrases like "kalpazein" (to gallop, used to describe rising rents), "ektos eleγχou" (out of control), and "krysi" (crisis) carry strong negative connotations. While accurate, these choices contribute to the overall pessimistic tone. More neutral phrasing could mitigate the effect.
Bias by Omission
The article focuses heavily on the severity of the housing problem in Greece, citing Eurostat data and real estate market reports. However, it omits discussion of potential contributing factors beyond government policy, such as the impact of tourism, population shifts, or the role of private developers. While acknowledging government initiatives, it doesn't analyze their effectiveness or explore alternative solutions. This omission limits the reader's understanding of the problem's multifaceted nature.
False Dichotomy
The article presents a somewhat simplistic view of the situation, contrasting Greece's high housing costs with lower costs in other EU countries. While this comparison is valid, it doesn't fully explore the nuances of different housing markets, regulations, and economic contexts. The article implies a direct correlation between government policy and housing costs, neglecting other significant factors.
Sustainable Development Goals
High housing costs in Greece (35.5% of disposable income) compared to the EU average (19.2%) disproportionately affect low-income households, hindering their ability to meet basic needs and pushing them further into poverty. Rising rents, energy costs, and mortgage interest rates exacerbate the issue, negating the effects of income increases or tax cuts.