Milan is the city where renting weighs most on household income among Southern European markets (excluding Greece) according to an analysis by idealista, the leading real estate portal in Italy.
According to the study, based on market prices in the first quarter of 2021, households in Milan have to allocate 42.6% of their income to rent compared to 36.3% in Madrid and 35.8% in Lisbon, the major economic capitals with the highest share of income absorbed by rent.
The study by idealista, which cross-references rental prices in March 2021 and the estimated family income, sees the capital of Milan at the top of the top 10 South European countries with the highest rate of effort, together with three other Italian, three Portuguese and three Spanish cities, in a ranking that sees the Portuguese city of Setúbal (40.6%) in second place and Vicenza (39.6%) in third.
Next come the coastal cities of Faro (Portugal) and Santa Cruz de Tenerife (Spain), arm in arm with 38.8% of household income going to rent, one percentage point above the city of Évora (37.8%), capital of the Alentejo region in the south of Portugal.
Almería occupies seventh place in the ranking of southern European cities where the incidence of monthly rent is among the highest in relation to household income. Two other Italian cities complete the top 10: Como (37.2%) and Prato (36.5%), followed by Madrid with 36.3%.
The effort rate in large cities
If we focus on the major cities of Spain, Italy and Portugal, Milan concentrates the highest household income use with the already recorded 42.6%. The city that follows closest behind is Madrid, with 36.3%, ahead of Lisbon, with 35.8%.
Behind them are Barcelona (32.7%), Porto (30.8%) and Rome (30.2%), all of which are below the safety threshold of 33% of their income for rent recommended by experts.