Bank of Greece Chief Warns Housing Costs Are Delaying Family Formation and Deepening the Demographic Crisis

13:10 3/6/2026 - Πηγή: iEfimerida

Bank of Greece Governor Yannis Stournaras has warned that soaring housing costs are now one of the primary drivers of Greece's demographic decline

forcing young adults to delay or abandon plans to start families — and that government interventions, while welcome, will take significant time to have an effect.

Speaking at a central

banking conference in Dubrovnik, Mr. Stournaras said Greece's housing cost burden is among the highest in the Eurozone and that housing insecurity directly undermines long-term economic resilience by shrinking the labour force and straining public finances.

"Many young adults are forced to remain in their parental homes longer than they wish, while others postpone or entirely reconsider starting a family," he said.

Mr. Stournaras attributed the market's resistance to interest rate increases to the prevalence of cash purchases funded by accumulated savings and foreign investment, rather than bank mortgages — meaning that rate rises have not cooled demand as they would in more mortgage-dependent markets.

Urban tourism and property's safe-haven status among investors continue to sustain prices beyond the reach of domestic buyers.

The warning follows Greece's recent launch of two housing initiatives covered in this wire series: the €500 million Anakainizo renovation grant program to return vacant apartments to the rental market, and a government algorithm targeting landlords who under-declare rents — both aimed at a shortage that Mr. Stournaras said will not ease quickly.

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Bank of Greece Governor Yannis Stournaras has warned that soaring housing costs are now one of the primary drivers of Greece's demographic decline

forcing young adults to delay or abandon plans to start families — and that government interventions, while welcome, will take significant time to have an effect.

Speaking at a central banking conference in Dubrovnik, Mr. Stournaras said Greece's housing cost burden is among the highest in the Eurozone and that housing insecurity directly undermines long-term economic resilience by shrinking the labour force and straining public finances.

"Many young adults are forced to remain in their parental homes longer than they wish, while others postpone or entirely reconsider starting a family," he said.

Mr. Stournaras attributed the market's resistance to interest rate increases to the prevalence of cash purchases funded by accumulated savings and foreign investment, rather than bank mortgages — meaning that rate rises have not cooled demand as they would in more mortgage-dependent markets.

Urban tourism and property's safe-haven status among investors continue to sustain prices beyond the reach of domestic buyers.

The warning follows Greece's recent launch of two housing initiatives covered in this wire series: the €500 million Anakainizo renovation grant program to return vacant apartments to the rental market, and a government algorithm targeting landlords who under-declare rents — both aimed at a shortage that Mr. Stournaras said will not ease quickly.

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Bank, Greece Chief Warns Housing Costs Are Delaying Family Formation,Deepening, Demographic Crisis