News / Insights

The publication *Real Estate in Italy*, edited by the Department of Finance of the Ministry of Economy and Finance (MEF) and the Real Estate Market Observatory (OMI) of the Italian Revenue Agency, analyzes the nation’s real estate assets based on cadastral and tax data updated as of 2023. It also includes four in-depth thematic sections dedicated to real estate taxation in Italy and Europe, the application of the new IMU tax rate schedule, the relationship between young people and housing affordability, and the technical efficiency and energy savings of residential properties.

In 2023, out of 60.4 million real estate units, primary residences numbered over 20.1 million, while rental properties exceeded 6.5 million. Considering only the housing stock owned by individuals, 60.8% is used as the primary residence of the owner households, just over 11% is rented out, and approximately 18% is available for rent. It is estimated that nearly 76% of households live in owner-occupied housing, a slight decrease compared to 2020. However, significant regional differences emerge: in municipalities with high housing demand, the share of rented homes reaches about 14%, compared to less than 8% in other municipalities, where the proportion of vacant properties is higher. The total value of residential real estate, including appurtenances, amounts to approximately 6,090 billion euros, over 93% of which is held by individuals; the North accounts for 52% of the national total. Lombardy and Lazio have the highest property values, at 1,165.6 and 726 billion euros, respectively. In terms of property ownership, approximately 26.7 million taxpayers—equal to 63% of the total—own real estate and report an average annual income of 28,673 euros, higher than the 24,395 euros recorded for taxpayers as a whole. The average potential taxable value of residential properties is 94,400 euros. The report also analyzes real estate ownership by businesses, characterized by a predominance of micro and small enterprises and a strong concentration in corporations, which own 76% of the real estate units registered in the names of the corporate entities under consideration. Finally, the analysis of taxation highlights a growing concentration of tax revenue on certain key components, with recurring property taxes playing a central role, alongside more dynamic revenues linked to indirect taxes and the flat-rate tax.

A specific in-depth analysis focuses on housing affordability for young people. In 2023, out of 817,437 homebuyers, about one-third were under 36 years of age, totaling approximately 259,000 people—a slight decrease compared to 2022. A comparison of buyers’ incomes with those of residents reveals a particularly pronounced economic divide in the most attractive cities, especially in Milan, where homeownership is concentrated among individuals with incomes significantly higher than the local average. Overall, although the number of years’ income required to purchase a home has decreased compared to 2018, in 2023 a resident under 36 would have needed, on average, about 30 years’ income to buy a home in their municipality, compared to about 19 years for someone over 36. Renting therefore plays a particularly important role for younger generations: in 2023, there were approximately 1.49 million new renters, and those under 36 accounted for 54% of the total. Their incomes are generally lower than the average incomes of residents in their respective municipalities, confirming the role of renting in accommodating demand from those with more limited income, although instances of economic selection are emerging in the most dynamic urban areas. Looking at longer-term trends, between 2014 and 2023, the total number of homeowners grew by 3.8% and their total income by 21.1%; the value of real estate assets, measured by “estimated market value,” increased in the North but decreased in the Center and the South, while the potential taxable value grew moderately in all regions. Finally, between 2022 and 2023, average real estate values rose in major cities, led by Milan with an increase of over 11%, followed by Verona and Naples.