(Finance) – According to an analysis conducted by Idealistleader’s real estate portal in technological development in Italy, in the fourth quarter of 2024 the economic commitment to rent a house recorded a significant increase, passing from 26% to 30% of family income. On the contrary, the burden for the purchase of a home has reduced to 18%.
The investigation highlights that in 17 Italian provinces the rent exceeds 30% of family revenues, reporting a growing difficulty in supporting the costs of the home.
Second Vincenzo De Tommaso, head of the Idealista Study Office“I markets of sale and rents are closely linked. Both have experienced a period of stagnation, caused by the increase in interest rates and the increase in rent fees. This situation generated an impasse: many tenants, in the face of unfavorable conditions for the purchase, preferred to remain in the rent for rent pending better conditions, thus blocking the normal circulation of the real estate offer. However, the recent reduction of rates by the ECB has given new push to the sale market, reducing the economic effort to buy a house. We expect this change, together with the increase in the offer of rent houses, already visible in recent months thanks to the fact that many tenants have chosen to buy thus freeing homes, contributes to curbing the increase in the canons. In this way, they will be created more favorable conditions for those who decide to rentespecially in the main urban markets, where families are facing economic commitments well beyond the economic sustainability threshold “.
Florence Guide The ranking of cities with the greatest weight of family income rentswith a value equal to 48%. Follow Naples (47%), Rome and Venice (41%), Milan (40%) and Como (36%). In these cities, the demands of the owners widely exceed the 30%threshold, considered by experts as the maximum sustainable limit. Other locations such as Massa (34%), Vicenza (32%) and Bologna (31%) are also placed above the national average of 30%.
In the second quarter of 2024, more than half of the monitored cities recorded an increase in canons. Naples marked the highest increase (+9%), followed by Como (+8%) and Rome (+6%). On the contrary, Milan recorded a 3% dropprobably for reaching the maximum threshold of economic sustainability. Other cities, such as Bolzano (-11%), Massa (-9%) and Pesaro (-5%), also recorded reductions in the canons.
The economic effort to buy a home is generally lower than that to rent itwith some exceptions. Among the most onerous capitals, Venice stands out with 37%of the income intended for purchase, followed by Bolzano (35%), Milan (33%) and Naples (32%). Florence stands at 30%, while Rome (27%) and Bologna (25%) are under the critical threshold.
At the provincial level, Bolzano records the highest effort rate (37%), followed by Savona (34%) and Rimini (33%). However, the drop in interest rates has reduced the effort for the purchase in many cities, with Milan and Bolzano that have marked a decrease in 7 percentage points, Venice of 6 points and Rome of 3.
The effort rate measures the weight of the house on the purchasing power of families. In the case of rents, it is calculated as the share of the average net income destined to pay the fee of a typical home with two bedrooms. The rents data come from idealist, while those on family income are based on Istat sources.
For the purchase, the effort rate is determined by the fee of the annual income intended for the payment of an average mortgage, taking into account the updated interest rates published by the ECB. Thanks to recent rates, the purchase of a house has become more accessible In many areas, while the rents market remains under pressure.