Italy real estate market sees rise in rentals and transitory leases

The Italian real estate market is undergoing significant structural changes, characterized by a rise in rental activity and a shift toward flexible housing models. According to data from the Agenzia delle Entrate and Idealista, the total stock of rental properties in Italy grew by 15.8% year-on-year in the second quarter of 2026. This growth is largely driven by transitory leases, which increased by 41.6% annually and now account for 31.4% of the market. Cities such as Crotone, which saw a 123.1% increase in transitory offers, and Ascoli Piceno, with a 90.9% rise, highlight this trend toward short-term flexibility.

While new home purchases rose by 15.6%, the market for existing homes saw a slight decline. Major urban centers like Milan and Rome remain highly active, though Milan is seeing a notable shift toward subsidized rental formulas.

Conversely, the rental market faces social challenges. Research from SoloAffitti indicates that economic fragility is driving housing instability. In 2024, over 40,000 eviction orders were issued by judges, with approximately three-quarters attributed to unpaid rent or similar causes. The study found that 37% of tenants struggle with rents exceeding their budgets, while 74% of landlords reported unpaid rental debts.