This analysis delves into the economic and housing situation in Thessaloniki,particularly focusing on the Vardaris and Xyrokrini districts. It discusses the relationshipbetween urban development, economic resources, and resident housing.The article mentions the role of private investors in shaping gentrificationprocesses and advocates for a balance between economic growth and preservingthe neighborhood‘s character. Thessaloniki‘s economic landscape, drivenby tourism, port activities, industry, and education, sets the backdrop for thediscussion. The Vardaris and Xyrokrini districts, despite their central location,face economic challenges, manifested in dilapidated infrastructure and high unemploymentrates. The potential of upcoming urban developments, includingthe metro system and growing tourism, presents opportunities for revitalization.The housing fabric in Thessaloniki, characterized by Polykatoikia structures, iscontrasted with the more organized social housing in the mentioned districts.The article highlights the need for interventions to enhance living conditions,such as improving security and regulating Airbnb usage. Finally, the study proposesregulations to strike a balance between economic growth and housingaffordability while fostering a sustainable future for these neighborhoods.