The Thessaloniki Tenants’ Union has released a list of ten key positions addressing the city’s escalating housing crisis. The union attributes the crisis not only to market trends but to political reforms that have prioritised the commodification of housing, transforming it into an investment product. The group is calling for institutional interventions to ensure housing is treated as a social good, with policies aimed at the de-commodification and socialisation of housing.
The Union’s 10 positions on the housing crisis
- Roots of the crisis: The housing crisis stems not only from market trends but from political interventions that have commercialised housing and incentivised its transformation into an investment product. These policies have led to skyrocketing property values, a shift from residential to tourist and commercial use, and the concentration of housing stock in the hands of a few powerful real estate entities.
- Rising rents: The resurgence of the rental market has driven prices beyond the reach of many households. A decline in homeownership has increased the number of renters, while short-term rentals and tourism investments have reduced the availability of affordable housing. Residents are forced to compete with higher-income tenants, such as tourists and digital nomads.
- Structural causes: The surge in real estate prices is not a natural consequence of supply and demand but a result of political alliances between landlords, real estate interests, construction companies, and financial institutions. These stakeholders prioritise speculative profits over the housing needs of residents.
- Reorienting the market: The housing market, as a human-created institution, should serve human needs rather than maximise profits for landlords and investors. Institutional changes are urgently required to reorient the market towards ensuring housing as a social good.
- Impact on homeownership: The traditional model of widespread homeownership, once a foundation of housing security in Greece, is under threat. Declining real incomes, rising interest rates, and shrinking mortgage lending have eroded families’ ability to provide housing for younger generations. Over-indebted households are losing their homes to international investment organisations and being pushed into the already strained rental sector.
- Renters as the hardest hit: Renters, who comprise a quarter of Greece’s population and a third in urban centres like Thessaloniki, bear the brunt of the housing crisis. Rents have risen by an average of 7% annually since 2016, with a total increase exceeding 70% by 2024, while real incomes remain stagnant amidst rising living costs.
- Housing insecurity: Rental households are increasingly insecure, often spending a large portion of their income on housing. Rent increases of 50% to 100% are now commonplace, forcing renters to cut back on basic needs and relocate frequently, disrupting social ties, education for children, and stability. Many rental properties are poorly maintained and energy inefficient, adding to tenants’ financial burdens.
- Exploitation in the rental market: The rental market is rife with exploitation, as landlords and brokers operate with unchecked and often abusive practices, exacerbating tenants’ struggles.
- State inaction: The Greek government has failed to address the housing crisis and instead fuels speculation. Greece is the only EU country with no social housing stock. Policies like the “My Home” programme exclude large segments of society and increase demand in the real estate market, driving prices even higher.
- A crisis of distribution, not supply: Greece’s housing crisis is not one of scarcity but of distribution. A significant portion of the housing stock remains empty, while only high-profit uses—such as luxury tourist accommodation—are prioritised. Current construction activity focuses on luxury developments, further driving up prices and failing to meet the population’s housing needs.
A call for action
The Thessaloniki Tenants’ Union argues that systemic changes are necessary to address the housing crisis. By shifting away from treating housing as a commodity and implementing policies that prioritise social good, Greece can begin to ensure secure, affordable housing for all residents.
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