Smart Airbnb Clampdown: Algorithm to Freeze New Listings in Overloaded Areas

Facing mounting public pressure over skyrocketing rents and a growing housing crisis, the Greek government is preparing a new digital tool to curb the uncontrolled expansion of short-term rentals like Airbnb.

A custom-built algorithm will soon monitor the balance between long-term and short-term leases down to the postal code. If the short-term market exceeds sustainable levels, the issuance of new Property Registry Numbers (AMA) will be frozen in that area.

Next in Line: Thessaloniki and the Cycladic Islands

The model, initially rolled out in central Athens, is now being considered for expansion to Thessaloniki and high-pressure tourist zones like the Cyclades, where housing scarcity has reached crisis levels, especially for public servants such as teachers, doctors, and police officers.

“This is not a blanket ban. The clampdown is designed to act like a scalpel, not a hammer — block-by-block, street-by-street,” said an official from the Finance Ministry.

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Pilot Program in Athens Shows Early Results

The temporary freeze on new short-term rental permits is in place until December 31, 2026, and is currently active in 13 central Athenian neighborhoods, including Plaka, Koukaki, Kolonaki, Syntagma, Exarchia, and Gazi.

Preliminary market data shows a clear impact:

• In Syntagma, average rental prices dropped by 8.76% in a year.
• In Acropolis, rents fell by 8.26%.
• In Thiseio, the decline was 3.72%.
• Meanwhile, in Omonia, prices surged by 14.55%, and in Gazi, by 8.23%.

These contrasting trends show that market dynamics vary sharply by neighborhood, depending on local demand and tourism saturation.

New Study from Athens University Challenges Common Narrative

Adding fuel to the fire is a recent study from the Athens University of Economics and Business (AUEB), which questions the narrative that Airbnb is to blame for the housing crunch.

Key findings include:

• Only 0.4% of Greece’s housing stock is used exclusively for short-term rentals.
• A staggering 34.5% of homes (over 2.28 million properties) are not used as primary residences — including vacation homes, unfinished buildings, and vacant or unsold properties.
• In central Athens, just 1.1% of homes are listed on Airbnb-type platforms, while vacant homes exceed 25%.

The study suggests that the real issue may not be Airbnb, but the underutilization of existing housing stock.

Airbnb Responds: “We’re Not the Villains”

Airbnb, for its part, pushes back against the government’s stance, arguing that:

• 98% of Greek hosts are private individuals renting out just one or two properties.
• The average net income for hosts is just €628 per month.
• 80% of listings are rented for less than 90 days per year.
• Short-term rentals help families supplement their income and revive rural and regional housing markets.

The company is calling on Greek authorities to exempt homeowners who rent out their primary or secondary residences, or spare rooms in their homes.

Mixed Results and Market Realities

While early data suggests the clampdown is producing results, experts warn of unintended consequences:

• Last year’s registration deadline for new AMA numbers prompted thousands of owners to rush to register, ironically increasing short-term supply in the short term.
• In non-restricted areas, rental prices skyrocketed:
  • Kolokynthou: +24.12%
  • Amerikis Square: +9.07%
• In contrast, in restricted zones, the average increase was just 0.96%, compared to 7.37% in unrestricted areas.

What’s Next? A Smart, Data-Driven Approach

Despite pushback, the government insists it will reopen the Airbnb file and introduce further measures, this time using real-time data and precision targeting instead of across-the-board rules.

The next era of housing policy in Greece won’t be defined by blanket bans, but by smart algorithms that monitor local housing pressure — and act when limits are breached.

The challenge remains: How to strike a balance between landlords, tenants, tourists, and local economies? One thing is clear — the map of short-term rentals in Greece is being redrawn, neighborhood by neighborhood.

Source: pagenews.gr