# Economic challenges in Milan > Live situation record from CLSTR: https://clstr.news/situations/economic-challenges-in-milan > Updated: 2026-09-13T16:44:14.000Z. Sources: 19. Developments: 2. Milan is facing significant economic challenges regarding the cost of living and sector-specific declines. An initial report by Codacons highlighted Milan as Italy’s most expensive city, noting a sharp economic divide between the North and South. In Milan, a basket of food and services cost nearly 693 euros, whereas the same basket in Naples cost approximately 402 euros. By mid-September 2026, the city’s economic pressures expanded to include a tourism decline and a housing affordability crisis. Tourist arrivals in Milan’s center dropped by 29% during the summer of 2026 compared to the previous year, a trend Confcommercio linked to geopolitical conflicts and economic uncertainty. Although visitor volume decreased, per capita spending remained the highest in Italy. Concurrently, the rental market has reached critical levels. The European Commission reported that rental costs for a 60-square-meter apartment can consume up to 76% of the average salary, the highest ratio in the country. This crisis has drawn political attention, with MEP Ilaria Salis citing extreme rental prices to advocate for increased market regulation. ## Timeline ### 2026-09-13: Milan faces tourism decline and housing affordability crisis Milan reports a 29% decline in summer 2026 tourism arrivals despite leading Italy in average tourist spending. Meanwhile, rental costs have reached critical levels, consuming 76% of average local salaries. 10 sources. https://clstr.news/cluster/milan-tourism-and-business-travel-guide ### 2026-09-05: Milan remains Italy's most expensive city, Codacons report A Codacons report identifies Milan as Italy's most expensive city, with a cost of living 42% higher than Naples, highlighting a sharp economic divide between the North and South. 13 sources. https://clstr.news/cluster/catanzaro-ranked-among-italys-most-affordable-cities-in-new-report --- Cite as: Economic challenges in Milan. CLSTR, https://clstr.news/situations/economic-challenges-in-milan