Demand for short-term rentals in Milan collapses Rents remain the thorn in the side of Italian city governments

It was only last October when people were discussing the rise of temporary rentals in major Italian cities. It was an increasingly popular option, especially among out-of-town students and young workers, based on short-term contracts ranging from 30 days to 18 months, offering flexibility and speed in response to a growing demand for housing mobility. In a context where traditional rental prices were becoming increasingly unaffordable—especially in large urban centers—temporary leases appeared to be a beneficial solution for both tenants and landlords. After all, the issue of rent is not new; it has long been one of the most pressing issues in Italian housing policy, the subject of ongoing debate between citizens and institutions. In Milan in particular, the topic has become almost paradigmatic: the city has often been at the center of a race to experiment with solutions that look promising on paper, but that are rarely implemented with continuity or real effectiveness. And yet, less than a year later, the landscape already seems to have changed. According to the latest report by Immobiliare.it Insights, the data intelligence division of Italy's leading real estate platform, the positive trend of temporary rentals has undergone a sharp reversal. Following a widespread increase in prices (an average of +28% nationwide compared to the first half of 2024), demand has dropped significantly, especially in major cities.

Florence tops the list of cities where interest in this rental formula has dropped most drastically, with a -41%, followed by Venice (-37%), Naples (-30%), and Verona (-29%). Southern cities such as Palermo (-28%) and Bari (-19%) have also seen significant declines. Milan, long considered a barometer of the Italian real estate market, shows a -20%, while Rome, although experiencing a more moderate decline (-7%), still sees a slowdown in demand growth. The only notable exception, bucking the overall trend, is Genoa, which recorded a surprising +78% increase in requests. However, this figure must be understood in light of a simultaneous collapse in supply (-56%): the scarcity of available properties likely pushed part of the demand to act more quickly, keeping interest levels high. Turin also shows a positive trend (+7%), though less marked, while supply there has contracted by 33%. In parallel with the drop in demand, prices for temporary rentals have risen significantly in almost all monitored areas. Impressive increases have also been recorded in Bologna, Rome, Turin, and Venice, while in Milan—where prices were already among the highest in Italy—the increase was limited to 6%, pushing the average cost to levels that are now hardly sustainable for those without high incomes or family support.

The overall picture is that of a real estate market that is dangerously approaching a saturation point. This is also confirmed by data from SkyTG24, which reports that over the past three years, the demand for rental housing has collapsed by 63.8%, while at the same time the supply of properties on the market has increased by 38%. A widening gap that clearly shows just how unbalanced and unsustainable the system has become. Particularly concerning are the continuously rising rental prices, which in many cities do not reflect the actual economic capacity of tenants. The most affected are the younger, more precarious segments of the population or those with unstable incomes, who are often forced to accept temporary and less convenient housing options just to find a place to live. The risk of a crash is drawing ever closer, especially in the absence of structural policy interventions.