Access to affordable housing in Cyprus has long ceased to be a narrowly defined social issue. It has evolved into a structural problem that affects the economy, the labour market and, ultimately, social cohesion. While statistics suggest that the scale of the problem in Cyprus is not as acute as in other EU member states, this does not mean that it is not placing severe strain on the average Cypriot household.
For a country traditionally built around a model of home ownership, the growing inability of young people, workers and families to buy - or even rent - decent housing is a clear indication that something has gone wrong.
The sharp rise in property prices and rents is largely the result of rapid population growth following Russia’s invasion of Ukraine, which brought thousands of Ukrainians to the island. This was followed by the relocation of a significant number of technology companies. Housing supply failed to keep pace with demand, resulting in a market that favours those with liquidity while leaving salaried workers and middle-income households increasingly behind.
The problem, however, is not purely economic. When young people cannot live close to their place of work, or are forced to allocate a disproportionate share of their income to housing, their choices become limited, life decisions are postponed and a sense of insecurity deepens. At the same time, key sectors of the economy struggle to attract staff, as the cost of housing renders relocation to certain areas financially unviable.
The European Affordable Housing Plan highlights that this is not solely a Cypriot challenge. For Cyprus, however, the task is twofold: to make effective use of European tools while simultaneously reshaping its own housing policy. Affordable housing cannot be addressed through piecemeal measures or subsidies alone. It requires long-term planning, close cooperation between the state and local authorities, and policies that genuinely increase the supply of homes for permanent residence.
Bolder interventions are needed, including measures such as the taxation of idle urban properties - a proposal already put forward by the Cyprus Scientific and Technical Chamber (ETEK). If the state, both government and political parties, is serious about citizens’ wellbeing, increasing housing supply is the only viable path to restoring balance and easing pressure on household budgets.