Italy housing market shows divergence in student rentals and mortgage trends

Italy is experiencing diverse shifts in its housing and credit markets. The university rental market is becoming increasingly selective, driven by university prestige and property quality. While national averages for single rooms have seen a slight decline, prices vary wildly by city: single rooms in Potenza start at 150 euros, while premium student housing in Rome can reach 1,000 euros, and some converted short-term rentals in the capital cost up to 1,500 euros for double rooms. In Turin, single rooms average 479 euros. In Cagliari, a significant housing shortage persists as regional university residences cover only a fraction of the demand.

Regarding mortgage lending, data from the first quarter of 2026 shows mixed regional results. In Puglia, mortgage disbursements for families rose by 7.5% compared to the previous year, totaling 662.3 million euros. Conversely, in parts of Lombardy like Lecco, there was a slight decrease of 0.9% in the first quarter.

New social support measures are also emerging. The Italian government is preparing a housing support fund for separated or divorced parents with dependent children. This initiative, part of the 2026 budget, allocates 60 million euros over three years (2026-2028) to cover up to 50% of rental costs, with a maximum of 6,000 euros per year. Additionally, university students living away from home can benefit from an Irpef tax deduction of 19% on rental expenses, up to a maximum annual recovery of 500.27 euros.