In the second quarter of 2025, renting a home in Italy has become more financially demanding, while the cost of buying with a mortgage has eased slightly.
According to new research from idealista, the leading Italian property portal, the average rental effort rate — the percentage of household income needed to rent a typical two-bedroom home — has risen from 30% in Q2 2024 to 31% in Q2 2025. In contrast, the home purchase effort rate has dropped from 20% to 17% over the same period.
Renting in Italy: highest and lowest effort rates
Massa remains Italy’s most expensive city for tenants, with 57% of household income going towards rent. Major urban centres follow closely:
- Milan, Rome and Naples – 38%
- Venice – 37%
- Como – 36%
- Florence – 35%
- Bolzano – above the national average at 31%
The most affordable cities for renters include Cagliari (30%) and Terni, Biella, Ascoli Piceno, Asti and Avellino (14%).
Annual changes in rental affordability
On a year-on-year basis:
- Decreases – 42 cities, led by Vicenza and Ravenna (-10%), Latina and Rimini (-7%), and Venice (-5%).
- Increases – 27 cities, with the sharpest rises in Massa (+10%), Grosseto (+7%) and Bolzano (+5%).
At provincial level, 23 areas exceed the 31% affordability threshold recommended by experts. The most expensive provinces are Belluno (60% of income spent on rent) and Aosta (52%), followed by Milan (43%) and Rome (39%).
The most affordable province is Terni, where rents account for just 12% of household income.
Buying a home in Italy: mortgage effort rates drop
When it comes to purchasing, Bolzano has the highest mortgage effort rate among provincial capitals at 35%, followed by:
- Venice – 34%
- Milan – 30%
- Rimini – 28%
- Naples – 27%
- Rome and Florence – 26%
A total of 29 provincial capitals have rates above the national average of 17%. At the lower end, Biella stands out with just 6% of income spent on mortgage repayments.
Year-on-year mortgage trends
Mortgage affordability improved in 93 provincial capitals. The biggest drops were recorded in:
- Barletta – -9%
- Milan and Venice – -5%
- Florence – -4%
- Bologna – -3%
- Rome, Palermo, Turin and Cagliari – -2%
Only a few locations saw increases, such as Como (+2%), and Lucca, Brescia and Belluno (+1%).
At provincial level, Bolzano again ranks highest at 37%, followed by Savona, Imperia and Rimini (30%). Other expensive provinces include Naples (25%), Venice and Milan (24%), Florence (23%) and Rome (22%).
The cheapest province for buyers remains Biella, where mortgage repayments take up just 5% of household income.
Why the effort rate matters for buyers and renters
The effort rate measures how much of a household’s net income goes towards housing costs.
- For rentals – calculated using the annual rent of a typical two-bedroom property (three-room home) compared to average net household income (ISTAT data).
- For purchases – based on the annual cost of a “typical” mortgage considering average rates, loan terms and ECB interest rate data.
Understanding this indicator helps both domestic and international property seekers assess where housing is most affordable in Italy.
Key takeaways for international buyers & investors
- Rental pressure is growing in many Italian cities, especially tourist hotspots and high-demand coastal areas.
- Buying has become slightly more affordable, largely due to mortgage rate stabilisation.
- For investors, high rental effort rates can signal strong rental yields, but also highlight affordability challenges for local tenants.
If you’re exploring the Italian property market in 2025 — whether for relocation, investment, or holiday home purposes — understanding where the best value lies can make a significant difference to your returns and quality of life.