Milan’s Rental Market Cools Despite High Prices
Milan, Lombardy, Italy – Despite remaining the most expensive city for renters with an average monthly rent of 22.2 euros per square meter, Milan has experienced a notable decrease in long-term rental prices. According to data from Immobiliare.it Insights for the first three months of 2026, rents in the Lombard capital fell by 1.4% compared to a year ago and by 0.2% quarter-on-quarter.
This downturn in rental prices comes amidst a significant shift in market dynamics. Demand for rental properties in Milan has dropped by 9.6% over the past 12 months, while the supply of available properties has surged by an impressive 24.5%. This indicates a rebalancing of the market, potentially influenced by factors such as the Olympic Games’ impact on short-term rentals, which may have indirectly affected the long-term market.
National Rental Trends: Supply Up, Demand Down, Prices Still Rising
Across Italy, the rental market is characterized by a renewed growth in supply, up 24.4% in the last 12 months. Concurrently, rental demand, while still robust compared to the sales market, has decreased by 10.6% over the same period. Despite these shifts, average rental prices nationwide have continued to climb, registering a 3.6% increase.
Paolo Giabardo, General Director of Immobiliare.it, commented on the situation: “In the rental sector, there remains an imbalance between a still very high demand, despite the pressure on individual listings gradually easing, and a supply that, although recovering, is still inadequate to fully satisfy it. The available stock is growing, but achieving a new equilibrium requires longer times.”
While Valle d’Aosta leads as the most expensive region for rentals at 23 euros per square meter, with a 33% increase from early 2025, followed by Lombardy (18.5 euros per square meter), Central Italy has seen the most significant rental price hike at 7.5%. Southern Italy and the Islands both recorded a 6.6% increase, while the Northwest and Northeast saw more modest rises of 1.3% and 1.1% respectively. Florence also experienced a 2.6% decrease in rents compared to early 2025.
Property Sales: Prices on the Rise, Rome Leads with 16.1% Increase
The first three months of 2026 confirm the upward trend in property sales prices observed throughout the previous year, with an overall increase of 4.3% compared to the same period in 2025.
Trentino Alto Adige remains the most expensive region to buy a home, with prices increasing by 6.6% year-on-year to 3,718 euros per square meter. It is followed by Lombardy (2,753 euros per square meter) and Liguria (2,743 euros per square meter).
Among cities, Rome stands out with a significant 16.1% increase in house prices compared to a year ago. Trento and Ancona also saw substantial rises of 19.7% and 19.5% respectively.
Affordability Challenges: Single-Income Households Struggle
Accessibility to the housing market, particularly for single-income households, remains a critical issue. Calabria continues to be the most affordable region, being the only one with prices below 1,000 euros per square meter. Consequently, its capital, along with Campobasso, are the only cities where a single income is sufficient to purchase over half of the available homes.
In contrast, in cities like Florence, 99.5% of homes are inaccessible to single-income households. Even in Genoa, a city undergoing significant urban regeneration, a single income is only sufficient to access 47.4% of the real estate market. This highlights a growing disparity in housing affordability across Italy.
Source: https://www.milanofinanza.it/news/a-milano-affitti-in-calo-dell-1-4-rispetto-a-un-anno-fa-mentre-a-roma-comprare-casa-costa-il-16-in-202604082309053752
