kathimerini.gr
Greece's Housing Crisis: Construction Collapse, Income Drop Fuel Shortage
Greece faces a severe housing crisis driven by reduced construction (down from an average 52,000 new homes annually in 2001-2011 to 26,000 in 2011-2021), high vacancy rates (around 700,000 nationwide but decreasing), and low household disposable income (68% of 2010 levels).
- How significant is the role of short-term rentals and "golden visa" programs in contributing to the housing shortage in Greece?
- The decrease in new housing supply is primarily due to a dramatic fall in investment in new homes. Annual construction of new homes averaged 52,000 during 2001-2011 (31,000 in Attica), dropping to 26,000 and 4,500 respectively in the following decade, linked to low numbers of new mortgages (14,000 in 2023 vs. 115,000 in 2007). This shortage is exacerbated by factors like increased divorces and single-person households.
- What are the primary causes of Greece's escalating housing crisis, and what are the immediate consequences for Greek households?
- The Greek housing crisis is intensifying due to a collapse in construction activity, a large number of vacant homes, and reduced household disposable income, which has not recovered from the economic crisis. Approximately 700,000 vacant homes exist nationwide, although 80,000 were converted to short-term rentals between 2011 and 2021. Only 35,000 of the available homes are in Attica, with 15,000 in central Athens.
- What long-term solutions might address the structural issues driving Greece's housing crisis, and how might the government and private sector effectively collaborate?
- The crisis reflects a 32% decrease in Greek household disposable income since 2010, contrasting with 40% and 30% increases in Romania and Czechia respectively. High unemployment, underemployment, low incomes, and dependence on parents among younger generations further restrict access to homeownership. The Independent Credit Rating Agency, established in 2022, could help facilitate long-term rentals by providing a credit score for potential tenants.
Cognitive Concepts
Framing Bias
The framing leans towards emphasizing the supply-side issues of the housing crisis, focusing on the decline in new construction and the role of short-term rentals. While these are important factors, the article gives less attention to demand-side factors, like rising incomes and increasing household sizes which also play a role. The headline (if any) could significantly impact the reader's perception by emphasizing certain aspects over others.
Language Bias
The language used is largely neutral and objective. However, phrases such as "explosion of short-term rentals" could be interpreted as emotionally charged. More neutral phrasing like "significant increase in short-term rentals" might be preferred.
Bias by Omission
The article focuses heavily on the perspectives of several experts, but omits the perspectives of renters and those directly impacted by the housing crisis. While acknowledging the limitations of space, including perspectives from those most affected would have provided a more balanced understanding of the issue and the lived experiences shaping the crisis.
False Dichotomy
The article presents a somewhat simplified view of the housing crisis, primarily focusing on the lack of new construction and the impact of short-term rentals. It does not fully explore the complexities of the situation, including systemic issues like zoning regulations, access to financing, or the role of speculation in driving up housing costs.
Sustainable Development Goals
The article highlights a housing crisis impacting many households, linked to decreased household income and the inability to recover from economic crisis losses. This directly affects the ability of vulnerable populations to meet basic needs, thus hindering progress towards No Poverty.