Population
60,317,116
Social/Public

3%

Ownership

75%

Cooperative

5%

3 Things about the country you might not know....

1. Culinary Diversity: While many people associate Italian cuisine with pasta and pizza, Italy is home to over 400 different types of cheese, many of which are unique to specific regions. Each region has its own distinct culinary traditions that often reflect the local ingredients and cultural influences. 2. Historical Libraries: Italy boasts some of the oldest and most significant libraries in the world, such as the Biblioteca Apostolica Vaticana in Vatican City and the Biblioteca Nazionale Centrale in Florence. These libraries house ancient manuscripts, rare books, and invaluable historical documents, making them treasure troves for scholars and history enthusiasts. 3. Biodiversity: Italy is one of the most biodiverse countries in Europe, hosting a wide range of ecosystems from alpine mountains to Mediterranean coastlines. The country is home to numerous national parks and reserves, and it has a high number of endemic species, including unique plants and animals that cannot be found anywhere else in the world.

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Housing Market

Italy’s housing market in 2025 is marked by strong demand, a limited housing supply, and steadily rising prices, especially for existing homes. The home ownership rate is high, with about 76% of Italians owning their residences, leaving roughly 24% as renters. Housing prices increased by 4.4% year-on-year in early 2025, driven mainly by existing properties, while new builds have shown more volatility. The median price to buy an apartment is approximately 2,000 to 2,500 euros per square meter, though this varies by region and city, with hotspots like Milan and Rome commanding higher prices. Renting an apartment typically costs between 10 and 15 euros per square meter per month on average. Publicly owned housing, including social housing, represents a small share—about 5.5% of the national housing stock. Social housing in Italy is a broader category than strictly public housing, as it includes both rental housing and home ownership solutions funded either publicly or through public-private partnerships, and is generally aimed at providing affordable options for families unable to access the private market. In cities, “public housing” (case popolari) specifically refers to municipally owned rentals for low-income residents, while “social housing” can also include cooperative schemes and subsidized ownership. Overall, affordability remains a concern for renters and lower-income households, but the housing cost burden is less severe than in many other European countries.

Housing Crisis

Italy is experiencing a pronounced housing crisis in 2025, as housing demand continues to outpace a limited and often aging supply. Residential property prices have climbed, with the national average reaching around 2,100 euros per square meter and major cities like Rome surpassing 3,100 euros. Rental costs are also rising sharply, averaging over 14 euros per square meter per month and increasing more than 7% in the past year. New sales listings are not keeping up with demand, and nearly 60% of real estate agents cite high prices as the main obstacle for prospective buyers. Renters and low-income households, particularly younger people and immigrants, are most affected. Around one quarter of Italians rent, and social housing comprises only about 5.5% of the housing stock—well below European norms. Rental affordability is a growing issue, with many, including third-country nationals, struggling to find options within their means. In cities, housing scarcity is exacerbated by the popularity of short-term rentals and by regional disparities, with urban centers and economically dynamic areas facing the most acute pressures. Homeless individuals and those in precarious employment are particularly vulnerable, often unable to access stable or affordable housing. The crisis is deepened by a large stock of older, poorly maintained properties and a slow pace of new construction or renovation, especially in high-demand regions.

National programs

The Italian national government is actively addressing affordable and sustainable housing through a multi-pronged approach that integrates direct funding, regulatory reform, and incentives for energy efficiency. Core strategies include the ongoing Piano Casa Italia, a comprehensive national plan focused on public and social housing, and the National Innovative Programme for the Quality of Living (PINQuA), which deploys approximately 3 billion euros to modernize and expand housing for social purposes, emphasizing sustainable urban development. Recent targets are closely aligned with broader European objectives under the “Fit for 55” and the Energy Performance of Buildings Directive, aiming to reduce emissions by 55% by 2030 and achieve climate neutrality by 2050. Central government policies support public-private partnerships, fund local regeneration, and enable housing agencies, but delivery is largely delegated to regional and municipal authorities. Key concrete programmes include: - The “Decreto Salva-Casa” (2024), which legalizes certain previously excluded dwellings, increasing market availability without new land consumption. - The “One Euro House” initiative, led by small municipalities to revive depopulated areas through affordable renovation. - Housing First and Service-Centres, targeting homelessness with a right-to-housing approach, offering direct housing and support without preconditions. - Substantial tax incentives for energy-efficient renovation, with deductions up to 50% of costs for main homes (Ecobonus and Bonus Ristrutturazioni). Total public spending on housing policy over the past decade is around 11 billion euros, with over 30 million euros specifically allocated in 2025 to support tenants in rental arrears.

Cooperative Housing

Housing cooperatives in Italy represent a small but socially significant segment of the national housing stock, estimated to account for less than 5% of all housing units. Their presence is more pronounced in northern cities like Milan, where they have built tens of thousands of units, while in cities like Rome, their impact is still limited but growing. Cooperative housing serves as an alternative to public housing, catering especially to low- and middle-income families, young people, and the elderly who struggle to access the conventional market. The sector is expanding through innovative approaches such as the “autorecupero” (self-recovery) model, which allows cooperative groups to reclaim and restore abandoned public buildings, supported by regional laws and municipal programs. Growth in the sector has been fueled by rising property prices and increasing difficulties for vulnerable groups to find affordable homes. Recent years have seen renewed policy interest, with a shift from state-driven public housing toward mixed models involving public-private partnerships, social innovation, and support for cooperative initiatives. Nationally, support for cooperative housing development is largely indirect—central government sets strategic frameworks and provides funding (notably through programs like PINQuA), while delivery and regulatory incentives, such as priority access to land and planning benefits, are managed at regional and municipal levels. Although the sector’s overall share remains small, housing cooperatives are increasingly recognized as a promising means to address affordability and social inclusion in Italy’s evolving housing system.

Further Actors

In Italy, a diverse range of individuals and organizations are advocating for solutions to the housing crisis and promoting affordable and sustainable housing, particularly in major cities. Local governments, especially those in large metropolitan areas like Rome and Milan, have been vocal and active—Rome’s municipal administration is implementing the “Piano Casa Roma 2025,” aiming to deliver thousands of new public housing units and provide rental subsidies to vulnerable groups. Academic stakeholders and think tanks, such as research teams at the Triennale di Milano, contribute analysis and pilot projects focused on social housing models. Banking foundations like Fondazione Cariplo play a prominent role, having launched private social housing initiatives and investing in property funds for affordable homes. From the real estate sector, cooperatives and ethical investors have been increasingly involved in projects targeting low- and middle-income families, while SMEs in construction participate in urban regeneration schemes. NGOs, including those in the “Housing First” network, advocate for the right to housing and run service centres supporting homeless and at-risk populations. Broad coalitions encompassing cities, regional authorities, and advocacy groups regularly call for stronger regulation of the rental market and for reallocating unused public buildings for social use. Promising partners for collaboration include municipal housing departments, banking foundations (notably in Northern Italy), research centres connected to urban studies faculties, established housing cooperatives, and non-profits focused on social inclusion and sustainable urban development.