Housing: the supply of rental properties is increasing, but rising sale prices are putting a damper on affordability

The Italian residential market in the first half of 2026 is showing signs of stabilisation in the rental sector, whilst the sales market remains under pressure. The supply of properties to let has in fact risen by 19.3 per cent year-on-year, according to the latest market monitor from Immobiliare.it Insights, easing the pressure from demand and helping to bring about greater stability in rents. In the sales market, by contrast, the available stock has fallen by 1.4 per cent, whilst demand has risen by 2.5 per cent and this pressure has led to a 4.3 per cent increase in prices.

The growth in the rental stock is evident across all Italian macro-regions, with the North-East leading the way (+23.7 per cent), followed by the North-West (+21.1 per cent) and Central Italy (+17.7 per cent). The increase in supply has led to a 7.3 per cent reduction in rental demand compared with the first half of 2025, although interest in renting remains high: compared with 2022, demand is still 41.2 per cent higher, as highlighted by the market monitor. Rents continue to rise, albeit at a more moderate pace: the national average stands at 14.7 euros per square metre, up by 2.9 per cent. For a two-room flat, the average rent is around 872 euros per month, compared with the average monthly mortgage repayment of 616 euros for a similar property.

Florence is one of the most significant examples. In the rental market, the available stock has increased by 77.5 per cent, whilst demand has fallen by 25.9 per cent. Rents remain broadly stable at 21.4 euros per square metre (-0.2 per cent). In terms of property sales, however, Florence remains the second most expensive city in Italia after Milan, at €4,735 per square metre, up by 3.5 per cent. The stock of properties for sale rose by 4.7 per cent, whilst demand pressure fell by 14.2 per cent.

In terms of sale prices, Milan retains the top spot at €5,675 per square metre (+2.6 per cent). Rome, with growth of 6.1 per cent, reaches €3,826 per square metre and overtakes Bologna, which remains at €3,821. Among the most significant increases, Turin (+8.3 per cent) and Genoa (+6.6 per cent) stand out. Reggio Calabria, on the other hand, is the only metropolitan city to have seen a decline, with a fall of 2.5 per cent.

Rising prices continue to weigh on households’ purchasing power. In the first half of 2026, with average mortgage rates at 3.4 per cent, the proportion of affordable properties fell to 58.4 per cent for dual-income households and to 30.5 per cent for single-income households. Florence is the most difficult city for prospective buyers: just 16.6 per cent of homes are affordable for a dual-income household, 6 percentage points lower than in the first half of 2025 and 29.1 percentage points lower than in 2022. Next, in terms of low affordability, come Milan with 38.7 per cent, Venice with 37.6 per cent and Rome with 41.4 per cent.