According to theTecnocasa Group Research Officethe rental market in Italy recorded a significant increase in rents in the second half of 2023. The data highlights a growth of 4.2% for studio apartments, 3.6% for two-room apartments and 3.4% for three-room apartments. This increase marks a continuation of the recovery in values that began in the second half of 2015, temporarily interrupted by the pandemic in 2020, but strongly resumed in 2021.
Supply and demand for rental properties
The growing demand for rental properties is partly due to the difficulty of purchasing a home, caused by high interest rates. At the same time, the supply of rental properties is decreasing for various reasons. Among these, the increase in short-term rentals, despite a slowdown in some cities, and the fear of owners of not being able to regain possession of their property in case of need. Furthermore, many tenants prefer to stay in rent, not being able to buy, thus reducing the turnover of available apartments.
Lease times and types
These factors have contributed to reducing rental times, which now average 35 days. The majority of those who rented a house in the second half of 2023, 61.2%, did so due to housing choice. Off-site workers follow with 26% and university students with 12.8%. Difficulties in accessing the credit market persist, especially for young people and single-income earners, a trend that could worsen with the increase in interest rates.
Finally, there has been an increase in the use of temporary rent rental contracts, which rose from 28.6% to 32.7% of the total, reflecting greater flexibility and adaptation to the mobility needs of the population.
Those who choose to live in rent
Renting is the predominant choice for young people between 18 and 34, representing 48.8% of the total. As for marital status, 47.1% of tenants are single, although the majority remain families. The most rented types of properties are the two-room apartment, with 37.1%, and the three-room apartment, with 31.1%.
Florence stands out as the city with the most significant increase in rents, with increases of 7.3% for studio and three-room apartments, and 6.6% for two-room apartments respectively. Rome follows with increases of 5.4%, 4.3% and 5.3%. Milan, on the other hand, confirms itself as the city with the highest rents: 800 euros for a studio apartment, 1100 euros for a two-room apartment and 1480 euros for a three-room apartment.
