High Housing Costs Worsen Greece’s Demographic Challenge
Bank of Greece Governor Yannis Stournaras says limited access to affordable housing is delaying family formation, adding pressure to the country’s shrinking and aging population
Greece’s housing affordability crisis is worsening the country’s demographic challenges, according to Bank of Greece Governor Yannis Stournaras.
Speaking at a conference hosted by the Croatian National Bank in Dubrovnik, Stournaras said the housing cost burden faced by Greek households is among the highest in the eurozone. He warned that housing insecurity is increasingly becoming a factor influencing long-term demographic trends.
According to Stournaras, limited access to affordable housing is delaying the creation of new households, particularly among younger generations. Many young adults remain in their parents’ homes longer than they would like, while others postpone or reconsider plans to start a family.
He argued that population decline and aging reduce the size of the workforce, weaken long-term growth potential and place additional strain on public finances. In this context, housing affordability is directly linked to demographic sustainability and economic resilience.
The governor also highlighted data showing that Greece’s property market is financed largely through buyers’ savings rather than mortgage lending.
“A significant share of transactions is funded through household savings rather than bank borrowing,” he said, adding that housing demand appears relatively insensitive to interest rate movements because many buyers rely on accumulated wealth instead of loans to purchase property.
Despite affordability concerns, demand for housing remains strong. Stournaras said it is being supported by domestic factors such as gradually rising disposable incomes, improved economic expectations and targeted government housing support measures.
At the same time, foreign investment, growing tourist activity in urban areas and the perception of real estate as a relatively safe asset continue to fuel demand.
Stournaras also referred to government initiatives aimed at easing the housing crisis, including subsidized housing loans and measures to strengthen social housing.
However, he cautioned that these policies will take time to produce results and that affordability pressures are likely to persist in the short term.
Σύμφωνα με νέα έρευνα, οι πολεμικές τέχνες δεν αποτελούν απλά μια μορφή φυσικής δραστηριότητας, αλλά μια σύνθετη πρακτική που συνδυάζει κίνηση, συγκέντρωση, αναπνοή και κοινωνική αλληλεπίδραση
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