The landscape of the Italian real estate market presents a paradox: while Italy has one of the highest rates of home ownership in Europe, it also faces a significant number of vacant properties. With more than 9.6 million unoccupied homes, this situation reflects a troubling disconnect within a system that often fails to address evolving housing needs. A recent report by the IFEL Foundation, titled ‘Housing Supply in Italy: A General Overview,’ highlights this complex issue.
Data from the IFEL Foundation indicates that Italy is experiencing a profound housing emergency. The latest census from ISTAT shows that unoccupied dwellings account for an alarming 27.3% of the total housing stock. This figure is more than three times that of France, at 7.8%, and six times higher than Germany’s 4.4%. This striking disparity raises critical questions about how Italy manages its property resources.
The geographical distribution of vacant homes
The issue of vacant homes in Italy is not uniformly distributed across the country. Southern metropolitan areas, particularly cities like Reggio Calabria (40.2%), Messina (39.8%), and Palermo (32.5%), report the highest vacancy rates. In contrast, northern cities such as Milano (12.4%), Bologna (15.5%), and Firenze (14.9%) exhibit more vibrant and responsive housing markets.
Demand-supply imbalance
Despite having over 35 million properties in Italy, the demand for suitable housing remains largely unmet, particularly among middle and low-income families in urban settings. This situation underscores a stark imbalance between housing demand and supply, exacerbated by a weak rental market where only 13.1% of homes are available for rent. This contrasts sharply with France’s 33.3% and Germany’s 53.4% rental rates.
A significant portion of the unoccupied dwellings consists of second homes, often located in tourist areas. However, there are also numerous properties that are either in disrepair, inherited, or awaiting renovation. Unfortunately, available statistics do not provide a comprehensive analysis of how many of these homes are genuinely abandoned or merely infrequently used, thus creating an information gap that complicates effective policy planning.
The role of social housing
Another critical aspect influencing the Italian real estate landscape is the scarcity of social housing, which constitutes only 2.6% of the total housing stock. Despite this limitation, social housing plays a significant role in the rental market, accounting for 19.6% of rental offerings. However, the annual allocation of social homes is modest, with approximately 16,000 units distributed, resulting in a turnover rate of just 2.1%.
Demographic challenges
Demographic trends complicate the housing scenario further. Forecasts suggest that one in three households will consist of a single person, while families with children are expected to decrease by 19.2%. This evolution necessitates a reassessment of housing policies to align with the shifting needs of the population.
The report from IFEL, unveiled during the ANCE conference titled ‘Cities in the Future: 2030-2050,’ highlights the absence of a coherent national housing strategy. Public policies appear fragmented and ineffective, providing minimal incentives for the reuse and regeneration of vacant homes. Additionally, administrative inefficiencies, regulatory constraints, and an unfavorable tax system for rentals exacerbate the problem.
Potential solutions
In the political arena, various proposals have emerged, ranging from IMU exemptions for landlords offering controlled rent to leveraging cohesion funds for construction and revitalization projects. However, without a systemic and coordinated approach, the Italian housing stock risks remaining a largely underutilized asset, further intensifying the housing crisis.