Building materials continue to see unchecked price hikes, making home construction and renovation daunting. Recent data indicates a 5% spike in the past year, with no signs of slowing. The surge in material costs has turned the dream of owning a home into a mere fantasy. Between January and September 2024, construction materials experienced nearly universal price increases, with notable jumps in:
- Bricks: 12.1%
- Electricity: 11.3%
- Copper wires: 9.1%
- Plastic pipes: 8.6%
- Heaters: 8.5%
These cost barriers hinder property maintenance and lead to prolonged construction delays or outright abandonment. As a result, the housing shortage worsens, compounded by escalating rental prices.
Airbnb’s Impact on Housing Availability
The surge in demand for short-term rentals, driven mainly by platforms like Airbnb, has significantly reduced the availability of long-term rental properties.
Short-term rentals cater primarily to tourists, reducing the availability of long-term rental options for locals, students, and families. This phenomenon is particularly pronounced in cities (Chania, Rethymno, Heraklion, etc.), where small apartments that might otherwise house locals are often used as tourist accommodations, driving up prices for the limited remaining options.
- Availability issues are forcing rents up to €600 for small apartments.
- Chania sees rent increases between 50% and 100%.
The combination of material price surges and the dominance of short-term rentals creates a dire situation for Crete’s residents. The spiralling costs of construction materials prevent the building and refurbishment of homes, while the Airbnb trend limits long-term housing availability, pushing rents beyond reach. The situation is escalating from a housing challenge to a full-blown crisis.
Addressing Crete’s housing crisis requires collective action to balance tourism needs with local housing demands. Without intervention, accessible, affordable housing will remain elusive for many residents.
