Accommodation in Santorini is definitely something that will concern you a great deal, as prices in (almost) all accommodation sites are sky high!
But let’s take things from the start…The cosmopolitan island has undergone a giant reconstruction process in the last decade (mainly hotels and rooms to rent), which has “covered” 18% (!) of the island’s surface. This, of course, has been affected by the IMMENSE demand, which has prolonged the holiday season into 7+ full months. The season starts from Easter and is completed in early November with occupancy being as high as 100%, during most months! So, with such high demand it is logical that hotels in Santorini have increased their prices.
If your budget is limited, you will have to visit the island in mid-April, when the prices at Santorini’s hotels are significantly lower. Prefer to stay at a traditional undercut site, which is pretty cool and offers Cycladic atmosphere with modern/island décor.
Mini tips: a) Accommodation sites in Santorini are too many, if you consider they are more than 1.000(!) (as many as the whole of Thessaloniki has)! b) The average price per night ranges between 130 and 160€, but of course not at the Caldera. There, it is up to 14 times higher…! c) There are accommodation sites where each overnight stay costs 2.000-3.000€! d) The unapproachable for the Greek public prices have established the island as a hot destination for foreign tourists (90%-10% ratio).