EU housing crisis escalates as Italian study finds 51 urban districts in severe stress

Rising prices and regulatory thresholds across Europe

Housing affordability pressures have expanded across the European Union, where Eurostat recorded a 4.7% annual rise in residential property prices and a 3% increase in rents during the second quarter of 2026. Across the bloc, 7.7% of citizens spend more than 40% of their disposable income on housing costs, while average square-meter prices have increased by 60% since 2013. Public housing represents under 7% of total EU stock, while short-term tourist listings doubled between 2018 and 2024. In response, the European Commission presented the Affordable Housing Act on 9 September 2026, establishing criteria to identify areas experiencing critical housing stress. Under the framework, an area is designated critical if buying an average residence requires at least eight years of local per capita income, provided that ratio has expanded over the previous decade, with an automatic critical designation applied when the ratio reaches 10.

Market tensions across Italian urban centres

In Italy, approximately 3 million people, representing 5% of the national population, face housing stress where shelter absorbs over 40% of earnings. A simulation by Scenari Immobiliari examining 60 representative neighbourhoods across Milan, Rome, Florence, Venice, and Naples found that 51 districts exceed the European Commission's threshold of eight income years, with 31 exceeding 10. All 12 analysed neighbourhoods in Florence and Venice crossed the threshold, led by Duomo-Signoria in Florence at 20 and Cannaregio in Venice at 19.5. Naples recorded 14.1 in San Carlo-Palazzo Reale, while Rome reached 13.9 in Trastevere and Milan reached 10.3 in its Duomo district. In Milan, five of 12 surveyed neighbourhoods breached the limit, with peripheral areas such as Bicocca, Santa Giulia, and Cascina Merlata exceeding eight years.

Supply constraints, empty homes, and political debate

National data collected by Federproprieta and Censis shows that 8.5 million homes, or 25.7% of all Italian residential property, sit vacant, including 1.5 million properties lacking utility connections. Research by CNA indicates that rental rates for apartments under 70 square metres grew between 20% and 50% from 2019 to 2025, outpacing wage growth fivefold. In major metropolitan areas, average monthly rents reached 1,800 euros in Milan and 1,300 euros in Florence. An analysis by SoloAffitti found that available rental units now stay on the market for an average of 1.8 months, while 86% of landlords cite the risk of unpaid rent and 62% cite potential eviction proceedings as primary deterrents to leasing.

SoloAffitti chief executive Silvia Spronelli called for measures to mobilize existing housing stock.

What is happening in Spain should push us to intervene before housing tension reaches even more critical levels in Italy. The issue is not only how many homes we have, but how many we can actually bring to market.

Political discussions escalated following Spanish Prime Minister Pedro Sanchez calling early general elections following demonstrations over housing. In Rome, Italian European Affairs Minister Tommaso Foti dismissed comparisons to Spain, noting that the government is preparing budget measures and upcoming institutional milestones, while opposition lawmakers warned that 12 million Italians who rent face acute pressure. Italian Prime Minister Giorgia Meloni confirmed that the government is evaluating housing support measures for the forthcoming budget.

Opposition deputy Marco Grimaldi warned of mounting difficulties for tenants across the country.

In Spain the housing emergency has become a social bomb, but Italy is not far behind. We continue to talk about a country of homeowners, but 12 million people, 20% of the population, live in rented housing.