8 Million Empty Homes Are Fueling Italy’s Rental Crunch — Here’s Why

Demand remains strong and changing

The problem is not weak demand. SoloAffitti’s tenant data shows a dynamic, more adult renter profile and rising willingness to spend more on rent:

• Average search time for a rental has fallen to 1.8 months, down from previous years.
• 3 out of 4 tenants say they choose to rent intentionally; 27% would prefer to buy.
• Tenants are getting older on average — mean age rose from 35 in 2024 to 37 in 2025.
• Tenants under 25 fell from 21.7% to 17.1%; those aged 35–50 rose to 33.1%, and over 50 increased to 15.8%.

Reasons for renting cover a broad set of needs:

• 43.6% rent for primary residence.
• 32.6% rent for work.
• 18.7% rent for study.
• 4.75% for other reasons.

The tenant mix implies longer-term, stable rental demand rather than purely transient demand. At the same time, over half of tenants increased their rental budget by more than 10%, reflecting a more expensive market and perhaps a willingness to accept higher monthly costs as part of lifestyle choices.

Rents: a mixed picture, not uniform inflation

Headline rent growth masks local variation. SoloAffitti reports that the average urban rent in 2025 is about €698 per month (up 4% from 2024), but local trends vary:

• Genoa and Trieste: +11%
• Ancona and Palermo: +7%
• Bari: +5%
• Milan: -10%, average €1,152
• Rome: +2%, average €1,019

Milan’s 10% fall reads as a rebalancing after years of steep growth rather than a structural collapse. Rome looks stable at high levels. Property features still move the needle:

• A garage adds about 11% (≈ €80) to rent.
• A parking space adds about 7% (≈ €50).
• Unfurnished properties see rents about 9% lower (≈ €66); partially furnished are about 5% lower (≈ €34).

These granular differences matter to tenants and small landlords deciding whether to bring a property to market and at what price.

Short-term rentals are not the main villain

Public debate often blames short-term tourist rentals for reducing long-term supply. The evidence here points to a more nuanced reality:

• Short-term rental stock is 500–600k, significantly smaller than the dormant long-term stock.
• Owners who offer properties for short lets are not necessarily those who would otherwise do long-term rentals; many would have left the property unused.
• During major events like the Rome Jubilee or the Milan Olympics temporary tourist supply rose (Rome +15% in 2025, Milan ≈+10% during the Olympics), but these spikes do not restructure the residential market.

Small fluctuations in supply can influence local prices in an already tight system, but short-term rentals are not the primary driver of the national rental crisis.

What this means for buyers, investors and expats

If you buy or invest in Italian property or search for long-term rental options as an expat, the current climate requires a pragmatic approach.

Practical takeaways:

• Expect searching times for tenants to be short in many markets— average 1.8 months — so good listings and fast responses matter.
• For investors: focus on tenant protection and cash-flow guarantees. Landlord confidence is low because of enforcement risk; secure payment mechanisms and insurance products could be decisive value-adds.
• For buy-to-let owners: accept that many landlords are emotionally attached and risk-averse. If you want to be competitive, invest in tenant screening and offer clear, legally robust guarantees.
• For renters and expats: competition is real and local. Targeting neighborhoods with stabilizing rents can yield savings, while amenities like parking or a garage meaningfully affect price.

Opportunities and strategies:

• Institutional investors who can absorb short-term enforcement or provide lease guarantees may unlock supply and capture yield as small owners exit the rental market.
• Product innovation could help: rent guarantee insurance, quicker deposit recovery processes, and rental bonds are all solutions that could convert dormant homes into income-producing assets.
• Policy advocacy should focus on speeding up dispute resolution and giving smaller owners practical, affordable tools to reduce exposure.

Risks and caveats

The market is not uniform and comes with tangible risks:

• Legal and procedural change is slow; a bill that offers more contract flexibility but not stronger income guarantees will likely have limited effect.
• Small owners' reluctance to rent may persist unless enforcement and repayment prospects improve.
• Local rent corrections (like Milan’s) can be temporary and do not mean all cities will follow.

We must also be cautious about the reliability of some datasets: evictions recorded in court represent only part of the phenomenon, and informal agreements and losses are harder to measure but important for behaviour.

How policymakers could shift the balance

If lawmakers want to convert idle stock into available rentals, measures that combine flexibility with security will work better than either approach alone.

Priority reforms we see as most likely to change owner behaviour:

• Fast-track or specialized rental dispute processes that reduce legal timelines.
• Scalable income protection tools: publicly backed insurance or low-cost private products covering several months of unpaid rent.
• Clearer and enforceable standards for tenant guarantees beyond a security deposit.
• Incentives for landlords to bring units to market during the initial years of pilot reforms.

Without these, legislative moves that only adjust contract lengths or reference market rents will fall short.

Frequently Asked Questions

Q: How many vacant properties are there in Italy according to the SoloAffitti analysis? A: SoloAffitti reports about 8 million vacant properties, compared with roughly 4.3 million homes currently rented.

Q: Are short-term tourist lets the main cause of the rental crisis? A: No. Short-term rentals number about 500–600k, far fewer than the idle long-term stock; they are a factor locally but not the primary national cause.

Q: What do landlords fear most? A: Nonpayment of rent (cited by 86%) and difficulties with eviction (cited by 62%) are the leading concerns.

Q: Will proposed rental law changes by Senator Garavaglia solve the problem? A: The proposed changes introduce more flexibility and rent transparency, but their success depends on addressing landlord trust—particularly by improving income guarantees and shortening eviction uncertainty.

Final assessment

Italy’s housing shortfall is not a problem of units but of activation. Until policy and private-sector solutions reduce the financial and legal exposure felt by the many small-scale, emotionally attached owners, a large portion of the housing stock will remain off the market. That reality keeps rental demand tight, search times short (1.8 months), and local rents shifting unevenly. If policymakers and market operators can strengthen practical protections for landlords while preserving tenant rights, the dormant supply may start to re-enter the market — but that will require measures that change the risk calculation that currently favors leaving properties empty.