GREECE TOPS EUROPE’S RENT SURGE! Housing Costs Up €342 Since 2019 as Tourism Fuels Crisis

Greece’s housing affordability crisis is now drawing international attention. A new report from the New Economics Foundation (NEF) ranks the country as the most affected in Europe by tourism-related rent increases, highlighting the growing financial burden on households.

According to the study, increased tourism activity has added an estimated €342 per year to average rents in Greece since 2019, the highest increase among all countries analyzed.

Greece leads Europe

The research combines Eurostat rental price data, airport passenger traffic and housing market trends to estimate the impact of tourism on residential rents.

Following Greece, the countries with the largest annual tourism-related rent increases since 2019 are:

• Spain: +€236
• Portugal: +€220
• Italy: +€202
• Ireland: +€135
• Austria: +€128

At the other end of the ranking, countries such as Denmark, Germany, the Netherlands, Poland and Belgium recorded much smaller—or even negative—tourism-related effects on rental prices.

Tourism boom comes with a housing cost

Europe remains the world’s largest tourism destination, attracting more than half of all international tourist arrivals every year.

While tourism generates billions of euros for European economies, the report argues that it also places growing pressure on local housing markets. Rising demand for short-term rentals and tourist accommodation reduces the availability of homes for permanent residents, contributing to higher rents.

Greece has increasingly become one of the countries where concerns over overtourism are intensifying, alongside Spain, Italy and the Netherlands.

Ireland expected to face the biggest increase by 2031

Although Greece currently records the largest tourism-related rent premium, the report forecasts that Ireland will experience the strongest additional rental growth over the next five years.

The NEF estimates that annual rents in Ireland could increase by another €251 by 2031 due to expanding tourism, with the planned expansion of Dublin Airport expected to add further pressure to an already strained housing market.

Projected annual tourism-linked rent increases between 2026 and 2031 include:

• Ireland: +€251
• Spain: +€217
• Portugal: +€193
• Greece: +€163
• Italy: +€132
• Denmark: +€103

Construction costs don’t tell the whole story

The report challenges the assumption that rising rents are driven primarily by higher construction costs.

Although construction costs across the European Union have risen by around 45% over the past decade, researchers found that countries with the strongest tourism-driven rental increases—such as Greece, Spain and Italy—have not experienced proportionally higher construction cost inflation.

This suggests that tourism itself is a key factor behind rental inflation, particularly in destinations where housing supply is limited and demand from visitors continues to grow.

A growing policy challenge

The findings reignite the debate over how governments can balance tourism growth with affordable housing for local residents.

As tourism continues to recover and expand, policymakers across Europe face mounting pressure to address housing affordability without undermining one of the continent’s most important economic sectors.

For Greece, where tourism remains a cornerstone of economic growth, the challenge will be finding policies that support both the industry and the long-term housing needs of its citizens.