Italy housing crisis: Urban planning in Rome and rent spikes in Campi Flegrei

Italy is facing significant housing challenges driven by urban planning shifts in Rome and real estate speculation in the Campi Flegrei region following seismic activity.

In Rome, technical changes to the urban master plan have sparked debate regarding the protection of historical villas and the management of short-term rentals. Critics warn that new regulations on building volumes and parking could facilitate demolitions of high-value buildings and reduce the supply of stable residential housing. Proposed solutions include creating a public registry for historical villas, limiting the quota of properties used for short-term rentals, and increasing transparency in parking regulations.

In the Campi Flegrei area, including Pozzuoli and Bacoli, the housing crisis has been exacerbated by recent earthquakes and bradyseism-related evacuations. The tenants' union Assocasa has reported that rental prices have doubled or even quadrupled, targeting displaced families. The union is calling for the use of agreed-upon rents (canone concordato) to provide tax benefits to owners while ensuring affordable housing for the more than 2,000 displaced residents. They are also urging local municipalities to implement tax incentives, such as IMU reductions, for landlords who house those affected by the emergency.