Athens, Greece – The cost of renting a modest apartment in Greece’s two largest cities continues to place significant strain on household budgets, with tenants now spending more than half of their income on housing. This trend, highlighted by recent data, underscores a growing affordability challenge for residents in Athens and Thessaloniki.
Half of Income Dedicated to Rent in Athens and Thessaloniki
According to data from Numbeo for May 2026, the average monthly rent for a one-bedroom, 50-square-meter apartment in central Athens has reached €625. With the average net monthly salary standing at €1,156, rent alone absorbs nearly 54% of take-home pay. In Thessaloniki, Greece’s second-largest city, the situation is almost identical. Average rent for a similar apartment stands at €541 per month, while the average net salary is €1,011, meaning that 53.48% of earnings are devoted to housing costs.
These figures emphasize the increasing affordability challenges facing renters in Greece, where wage growth has struggled to keep pace with rising housing costs. Despite the pressure on Greek households, the country’s major cities are no longer among Europe’s most extreme examples of housing unaffordability, a testament to even more severe situations elsewhere.
Southern Europe’s Housing Market Under Strain
Across Southern Europe, housing markets have come under intense strain in recent years. This phenomenon is driven by a combination of strong tourism demand, limited housing supply, foreign investment, and population growth in urban centers. Portugal currently presents one of the starkest examples of this trend.
In Lisbon, the average rent for a 50-square-meter apartment in the city center has climbed to €1,330 per month, while the average net salary stands at just €1,411. As a result, rent now consumes more than 99% of average monthly earnings, making it virtually impossible for many residents to live alone and contributing to growing demand for housing in suburban areas.
Numbeo’s analysis shows that several cities in Southern Europe face even greater affordability pressures than Athens. In Málaga, Spain, the average rent for a 50-square-meter apartment has reached €1,195, compared with an average net salary of €1,580. In Barcelona, tenants spend more than 70% of their income on rent, with average monthly housing costs of €1,436 against average earnings of €2,040.
Portugal’s second-largest city, Porto, has also experienced sharp rental inflation. Average rents have increased by 9.4% over the past year to €1,108 per month, while average net salaries remain below €1,300, leaving tenants spending more than 85% of their income on housing.
Athens: An Exception in Urban Rental Trends
In most European cities, the highest rents are typically found in central districts due to the concentration of businesses, cultural attractions, tourism, and employment opportunities. Athens, however, represents a notable exception to this general rule.
While central neighborhoods remain expensive, some of the highest rental prices are now recorded in the city’s southern coastal suburbs and, to a lesser extent, its northern suburbs. These areas have become increasingly sought after by both local and international residents, shifting the traditional rental landscape of the Greek capital.
Urban planning challenges have also reshaped housing preferences in Athens. The deterioration of some central neighborhoods, high population density, traffic congestion, and an aging housing stock have encouraged many residents to relocate to newer suburban areas. These areas often offer better housing quality and improved living conditions, contributing to the rising demand and prices outside the traditional city center.
The data underscores a critical challenge for Greek policymakers and urban planners: how to address the escalating housing costs and ensure affordable living for residents in major urban centers, while also managing the evolving dynamics of urban development and population shifts.
