Short-term rentals have been at the center of heated debates in recent years. They are often blamed for distorting the housing market, putting pressure on infrastructure, or creating “unfair competition” against hotels. However, the picture presented does not fully reflect reality. Below are the key arguments and available data.
The Myth of “Thousands of Properties”
Public discourse often cites exaggerated numbers regarding the scale of short-term rentals. These estimates are usually based on the registration of property IDs (known as AMAs in Greece), without considering that:
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A single property may have two or more IDs (for example, one issued by the owner and another by the manager).
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Many IDs remain inactive because the properties are used for long-term rentals, owner occupation, or simply remain vacant.
A study by the Athens University of Economics and Business (ELTRUN, 2025) shows that short-term rentals represent only 3% of the total housing stock in Greece, while just 0.4% of dwellings are used exclusively for this purpose. Thus, presenting raw figures without distinguishing between active and inactive listings creates misleading impressions.
Housing Crisis: The Real Causes
The housing crisis is indeed a pressing issue, but it cannot be attributed solely to short-term rentals.
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According to ELSTAT, 2.2 million dwellings (33% of the total stock) remain vacant or underutilized in Greece.
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Of these, more than 900,000 properties are inactive, with half tied up by banks and loan servicers due to debts.
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Around 180,000 properties remain unused because their owners lack the resources to renovate them.
Many of the properties currently used in short-term rentals were once abandoned or unsuitable for habitation. Thousands of small owners invested savings or loans to renovate them, improving not only their own income but also the overall housing stock. By contrast, large hotel complexes are often renovated or built with subsidies from European funds.
It is also important to note that the student housing crisis long predates the rise of short-term rentals. Today, a significant number of short-term rental properties are offered to students or teachers during the winter season, directly easing the pressure. Expanding such practices more broadly could provide meaningful support to social housing needs.
Pressure on Infrastructure
Short-term rentals are frequently accused of putting excessive strain on infrastructure. In reality, the greatest pressure comes from oversized tourist complexes that concentrate large numbers of visitors in areas with insufficient water, sewage, or traffic planning.
Short-term rentals, being smaller in scale and dispersed across neighborhoods, have a far lower per-unit impact. Importantly, since January 1, 2024, an increased environmental levy also applies to short-term rentals, rising from €1.50 to €8 or even €15 per night, thus directly contributing to infrastructure financing and environmental protection.
Unfair Competition?
The notion that short-term rentals constitute “unfair competition” against hotels does not hold up under scrutiny:
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They operate under a strict regulatory framework (property IDs, mandatory declarations to the tax authority, and taxation). From October 2025, additional obligations will come into force, including certifications, insurance, and inspections.
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According to the study “The Economic & Housing Impact of STR in Greece” (AUEB, 2025), short-term rentals contribute 4.5% – 5.4% to GDP and support over 100,000 jobs.
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They account for just 0.4% of the total housing stock, making them a marginal factor in housing shortages.
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Their impact on rent increases was only 1.8% of the total rise during the period 2019–2023.
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Revenues remain within the Greek economy and are taxed locally, unlike many hotel chains owned by foreign funds, where profits often flow abroad.
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Visitors in short-term rentals spend money at local taverns, cafes, groceries, and neighborhood businesses. By contrast, 47% of hotel bookings are all-inclusive packages, which largely trap spending within the hotel and reduce the spread of tourism income into the community.
Conclusion
Short-term rentals are now a regulated and integral part of the tourism market. They contribute significantly to GDP, support thousands of small property owners, upgrade previously unused housing stock, and spread the benefits of tourism across wider sections of society.
Targeting the sector with misleading numbers and exaggerated claims does not help shape effective policy. Balanced regulation, transparency, and cooperation among all stakeholders are the real path toward sustainable tourism development that benefits the economy and society as a whole.