Rent costs 75% more than mortgage payments in Italy

Renting or buying a home is not an easy decision for those living in or moving to Italy. According to the latest study by idealista, if the monthly rent for a two-bedroom apartment is 75% higher than the mortgage payment needed to buy the same home, you would need €42,703 in savings to make the purchase—a figure out of reach for many. Specifically, in Italy, the average monthly rent for such a home is €904, while the mortgage payment would be around €516.

According to Vincenzo De Tommaso, spokesperson for idealista, “the study highlights the difficult situation families face in gaining access to homeownership. In almost all markets, families could more easily pay the mortgage than the rent, but in many cases, they can’t make the leap because they lack the necessary savings.

Unfortunately, high rent prices prevent them from saving enough to buy a home, leading to greater financial stability and relief. Since it’s unrealistic to expect the financial system to ease risk criteria, the only practical solution seems to be adopting measures that significantly increase the supply of rental homes, which would help reduce prices and create a more balanced housing market.”

Differences between renting and having a mortgage in Italy

In most cases, the difference is smaller in major cities. The national average gap of 75% between rent and mortgage payments, meaning the average difference between the monthly rent and the payment required to cover a 30-year mortgage, is exceeded in only 17 out of 79 cities where data is available. However, in eight cities, the rent is more than double the mortgage payment, with Messina (154%) leading the way, followed by Genoa (116%) and Catania (111%). Other notable cities include Catanzaro (104%), Cosenza (103%), Brindisi (101%), Syracuse (101%), and Caltanissetta (100%).

Among the large markets, Turin has the largest gap at 74%, followed by Naples (48%), Rome (43%), and Milan (33%). On the other hand, Pesaro (-5%), Bolzano (-9%), Rimini, and Trento (both -12%) are the only cities where rent is lower than the mortgage payment.

Differences in Italian provinces

At the provincial level, the discrepancies are even more pronounced. The province of Aosta records the highest difference, with rents 170% higher than mortgage payments, followed by Ravenna (166%) and Lucca (163%). In total, there are 22 provinces where rent costs at least double the mortgage payment.

On the opposite end, the province of Bolzano is the only one where rent is 9% lower than the mortgage payment. Other provinces with smaller differences include Verona (11%), Trento (14%), and Naples (18%). Rome and Milan, on the other hand, show differences of 70% and 85%, respectively.

Buying a home: over €124,000 in savings needed for a mortgage down payment in Milan

To obtain a mortgage, it’s essential to have enough savings to cover the down payment or deposit, which is typically 20% of the property value, in addition to purchase-related costs, amounting to around 10%. Therefore, to secure a mortgage, you need to have approximately 30% of the property value available. Milan stands out as the city where the highest initial capital is required, with an average of €124,191. Next are Bolzano (€109,363), Venice (€96,820), Florence (€81,913), and Monza (€78,925). Among Italy’s major cities, Rome requires an average down payment of €71,563, while in Naples, the figure drops to €65,785. Turin, with €38,244, is below the national average of €42,703. Biella has the lowest down payment requirement at €14,727, followed by Ragusa (€17,174) and Caltanissetta (€17,321).

The province with the highest entry cost is Bolzano, requiring €112,735. Following are the provinces of Milan (€78,386), Rimini (€74,220), and Savona (€67,009). In Rome, the sum needed to purchase a home with a mortgage is €57,385. In contrast, Biella has the lowest entry amount, requiring only €12,069 in savings, followed by Isernia (€16,082) and Caltanissetta (€16,610).

Rent and mortgages: Milan the most expensive, Biella and Caltanissetta the most affordable

Among Italian cities, Milan has the highest rent for two-bedroom apartments, averaging €1,825 per month. Following are Florence (€1,398) and Venice (€1,295). On the opposite end, Caltanissetta has the lowest rent at just €418 per month, followed by Asti (€430) and Alessandria (€454).

For mortgage payments, Milan again tops the list with an average payment of €1,500 per month, followed by Bolzano (€1,321), Venice (€1,170), Florence (€990), and Monza (€953). Rome ranks ninth, with a payment of €865, while Naples is twelfth at €792. The most affordable mortgage payments are found in Biella (€178), Ragusa (€207), and Caltanissetta (€209).

Methodology

For this report, the idealista/data team analysed average prices for home sales and rentals of two-bedroom properties listed on their database during the second quarter, applying corrective factors to estimate the closing price. Purchase costs were estimated on taxes, expenses, mortgages, and commissions. Notary, registration, and management fees were applied uniformly across the country. For calculating mortgage payments, the latest data from the European Central Bank on interest rates was used.

The report focuses on the most common scenario: purchasing a main home with the assistance of a real estate agency.

Data collected and analysed by idealista/data, idealista’s proptech division, which provides information for professionals to facilitate strategic decisions in Spain, Italy, and Portugal. It uses all available parameters from idealista’s database in each country, along with other public and private data sources, to offer valuation, investment, acquisition, and market analysis services.