Housing affordability for Greek households

Georgios Gatopoulos, Alexandros Louka, Antonis Mavropoulos, Sotirios Saperas and Nikolaos Vettas
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Georgios Gatopoulos: Foundation for Economic and Industrial Research (IOBE) and American College of Greece
Alexandros Louka: Foundation for Economic and Industrial Research (IOBE)
Antonis Mavropoulos: Foundation for Economic and Industrial Research (IOBE)
Sotirios Saperas: Bank of Greece, Statistics Directorate
Nikolaos Vettas: Foundation for Economic and Industrial Research (IOBE), Athens University of Economics and Business and Centre for Economic Policy Research, UK

Economic Bulletin, 2025, issue 61, 33-62

Abstract: In this paper, we use two waves of the cross-sectional Household Finance and Consumption Survey (HFCS) for 2018 and 2021 in order to construct a housing affordability index. The index is based on the ratio of housing costs to household disposable income at both national and regional level, as well as according to the degree of urbanisation. The evolution of the index and of the housing cost overburden rate indicates that housing affordability worsened from 2018 to 2021, while also revealing significant regional heterogeneity, with the issue being more pronounced in urban areas, particularly among renting households. Subsequently, the study identifies, through both descriptive and econometric evidence, the characteristics of the most vulnerable households, showing that younger and smaller in size households, the unemployed and those with lower income are facing the highest affordability constraints. Via these findings, the paper provides useful insights for the design of policies aimed to address the housing affordability issue.

Keywords: housing affordability; vulnerable households; housing markets (search for similar items in EconPapers)
JEL-codes: D31 R21 R31 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:bog:econbl:y:2025:i:61:p:33-62

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