The public debate around short-term rentals is often intense and not infrequently accompanied by the belief that platforms such as Airbnb are responsible for skyrocketing rents and exacerbating the housing problem. However, a new in-depth study from the Athens University of Economics and Business (AUEB) comes to deconstruct this association, shedding light with numbers and data on the real picture.
Short-term rentals: An economic pillar, not a threat to housing
According to the report prepared by Professor Georgios Doukidis and Dr. Lefteris Kioses of the ELTRUN research centre of the Hellenic Academy of Athens, homes available exclusively for short-term rental constitute only 0.4% of the country’s total housing stock and only 1.1% of vacant homes. Even in the centre of Athens, exclusive STR dwellings do not exceed 1.1% of the total stock, while 25% of dwellings remain vacant.
The OPA’s statistical analysis shows that the effect of STRs on rental prices is less than 1.8% and is not statistically significant, unlike other factors such as low disposable income (10.3%) and inflation (7.5%). As noted, the main cause of rent increases is not short-term rentals, but a reduction in disposable income.
An underused building infrastructure
Greece has the third highest vacancy rate in the EU (34.5%), with more than 2.28 million properties unoccupied. STRs utilise only a small percentage of this stock and largely meet the needs of tourist demand, particularly during peak periods.
At the same time, construction activity is extremely limited: only 60,000 new homes have been built since 2015, and 40% of these remain vacant. Investment activity in housing is only 2.3% of GDP, the lowest in the Eurozone.
STRs: catalyst for tourism absorption and the economy
Short-term rentals are not just an alternative form of accommodation: they are a critical part of the country’s tourism capacity. In 2023, hotel occupancy exceeded 90% in the summer months, with STRs absorbing demand that would otherwise go unmet.
Their contribution to the national economy was equally impressive:
€3.25 billion direct contribution to GDP in 2023
Over 100,000 jobs
Up to 5.4% of GDP, taking into account input multipliers
STRs also contribute to the decentralisation of tourism by channelling visitors to areas without hotel infrastructure (such as small islands or rural areas), which broadens the tourism footprint and supports local economies.
STRs: supplementary and not main income
The majority of hosts in Greece are private: 94% of hosts are natural persons and 98% manage just one or two properties. The average gross monthly turnover per property is EUR 628, while the net income after expenses and taxes is estimated to be even lower.
Only 9% of landlords say they are willing to switch to long-term renting in case of restrictions, while 23% say they would leave the property vacant. For most, STRs act as a secondary income or a means of covering expenses.
A deregulated housing market
The housing market in Greece is characterised by chronic structural problems:
Owner-occupation is increasing, with the share of renters having fallen by 20% since 2010.
Access to credit is limited due to high interest rates.
Disposable income has returned to 2000 levels, while housing absorbs the highest share of income in the EU (35.2%).
These create suffocating pressures on households, which cannot be attributed to an individual phenomenon such as STRs.
Documented regulation instead of general prohibitions
The OPA study concludes that any regulation should be based on data rather than assumptions. Targeting areas with an over-concentration of STRs is a possible direction, with region-specific criteria, but not a horizontal policy that ignores the geographical, social and economic complexity of the phenomenon.
As Valentina Reino, Airbnb’s policy manager in Greece, notes:
“STRs are not the cause of the housing crisis, but a tool that supports the economy and revitalizes neighborhoods.”
Conclusions
The PPA survey is one of the most thorough attempts to record and evaluate the role of short-term rentals in Greece. It debunks the myth that Airbnb is primarily responsible for the housing crisis and calls for measured policies that do not sacrifice benefits on the altar of social pressure.
Rather than a scapegoat, STRs may prove to be part of the solution, provided they are part of a coherent and balanced housing policy framework.
For more information, the study is available here.
