Here’s why rents are getting more expensive and not only that! Two “solutions” given to an ever-increasing problem…
Housing has become a real issue for most Greeks and most Europeans!
This is mainly due to the increase in building materials, reduced housing supply and the development of short-term rentals.
In areas such as Larissa rental prices in the first quarter of 2024 increased by 11.4%.
To… “solve” this problem two main things happen:
First: Banks have been ordered to grant even more mortgages to… “heat” the market. There is talk of higher lending rates and cheaper interest rates to be seen before 2024 is gone!
Hence the vicious cycle will continue! Even more will base their lives on borrowed money! The current paradigm of auctions and evictions doesn’t seem to worry many people!
Secondly: European states strengthen the policy of social housing! Constructions of social housing are constantly being announced, in the context of the “strong commitment to building a public housing system”!
States offer people facing economic or social pressures some form of public or social housing system or by subsidizing rents, as is the case in Greece! “Housing Benefit is a welfare scheme for low-income households who are burdened with the cost of renting their first home,” reports the Ministry of Labor.
That way, those who can’t or don’t want to get a mortgage are dependent on the government for their housing! And anyone who is dependent is obliged to follow certain things, in order not to suddenly find himself homeless!
It is noteworthy that Spain already has 290,000 social housing, that is: affordable housing! In addition, it joined the Recovery Fund with a plan to build an additional 20,000 homes by 2026.
For now, Greece has joined the Recovery Fund with a €1.3 million plan for the renovation of 70 homes in the Municipality of Athens and 30 homes in the Municipality of Thessaloniki, while there is a will for more projects!
People who cannot stand on their own feet and finance their own housing or even illegal immigrants who are legalized and join Greece and Europe will stay in social housing!
State intervention is, will be, across Europe, in the so-called “pressured areas”, that is, where rents and asking sales prices have increased dramatically.
