The discussion around the role of Airbnb in the housing crisis gains a new dimension through the new report by the International Monetary Fund (IMF), which attempts to quantify for the first time the impact of short-term rentals on the Greek housing market. The main conclusion is that the expansion of short-term rental properties has indeed contributed to the increase in housing prices and rents, mainly in areas with strong tourism activity. However, the Fund clarifies that it is neither the only nor the most important factor that has shaped today’s market conditions.
Instead, the report describes a market where the housing crisis is the result of the simultaneous increase in demand and the inability of supply to keep pace. In other words, short-term rentals are part of the problem, but not the entire explanation behind it.
230,000 properties in seven years
The growth of short-term rentals in Greece has been impressive. According to IMF data, listings increased by approximately 240% between 2017 and 2024, rising from fewer than 100,000 to more than 230,000.
According to the IMF, homes available through short-term rental platforms now represent 3.5% of the country’s total housing stock. At the same time, their number corresponds to approximately 10% of homes that are not used as primary or secondary residences and almost one-third of the properties recorded as vacant in Greece.
Although these percentages are significant, the IMF highlights that the geographical distribution of properties is not uniform. The highest concentration is observed in central Athens, Piraeus, popular islands and other tourist destinations. This means that the impact of short-term rentals is particularly strong in specific areas, while in the rest of the country their effect is considerably smaller.
How do short-term rentals affect housing prices
The IMF conducted an econometric analysis using data from Spitogatos, INSETE and ELSTAT in order to measure the actual impact of short-term rentals on the housing market.
The analysis concludes that as the intensity of short-term rentals increases in an area, the asking sale prices of properties also increase.
This effect is even stronger in areas where homeownership rates are lower and a larger share of the population lives in rented accommodation. There, increased investment activity directs more properties towards short-term exploitation, reducing the number of homes available for purchase or long-term rental.
A similar picture is recorded in the rental market. Although the impact is smaller compared with property sale prices, the IMF finds that the conversion of homes from long-term to short-term rentals has contributed to reducing available supply, thereby increasing upward pressure on rents, especially in areas with high demand.
It is not only Airbnb’s fault
The most interesting conclusion of the report is that the IMF rejects the view that the housing crisis can be explained exclusively by the expansion of short-term rentals.
As it notes, after 2017 the Greek real estate market faced an unprecedented increase in demand, which came from many different sources. The return of foreign investors after the prolonged economic crisis, the low valuations of Greek properties, the Golden Visa programme, tax incentives for foreign pensioners, the reduction of ENFIA, as well as state support programmes for young buyers, all contributed to the significant strengthening of demand.
At the same time, however, the supply of new homes did not follow the same pace. The decade-long collapse of construction activity left behind a limited stock of new housing, while rising construction costs, labour shortages and lengthy licensing procedures slowed down the development of new properties. Therefore, even without the growth of short-term rentals, the market would still have faced significant pressure due to the major imbalance between supply and demand.
The solution lies in increasing supply
Unlike approaches that focus mainly on imposing stricter restrictions on Airbnb, the IMF adopts a more balanced approach.
The Fund recommends that Greek authorities evaluate the effectiveness of the restrictions already introduced on short-term rentals and, where necessary, strengthen incentives for moving more properties into the long-term rental market.
However, it points out that the substantial solution to the housing crisis cannot come only from the redistribution of existing homes. According to the IMF, the main priority should be increasing overall housing supply.
For this reason, it proposes the utilisation of thousands of vacant properties through renovation programmes, the removal of urban planning and ownership barriers that keep a large part of the housing stock outside the market, the development of more social housing through public-private partnerships, and the acceleration of construction activity through less bureaucracy and more investment.
The central message of the report is clear: short-term rentals affect the housing market, especially in areas with high tourism demand, but the housing crisis is the result of a broader combination of factors. According to the IMF, the long-term reduction of housing prices and rents will be achieved mainly through increasing the number of homes available on the market and not only through restrictions on Airbnb.
