Italian housing crisis and urban regeneration efforts

Industry leaders and municipal officials in Italy continue to address a housing crisis defined by a disconnect between high demand and declining construction activity. In Milan, building permits and notifications fell from approximately 4,000 in 2022 to 1,000 in 2024, despite an estimated demand for 35,000 units.

To manage urban transformation, Milan Mayor Giuseppe Sala has emphasized the necessity of a solid relationship with the private sector, noting that public funds alone cannot meet social housing needs. Real estate associations, such as Confedilizia, have advocated for tax reductions, the continuation of construction incentives through at least 2026, and the ‘cedolare secca’ tax regime to support property ownership.

At the ‘Comunicare l’Abitare 2026’ think tank in Rome, industry experts expanded these discussions to include the urgent need for urban regeneration. Giorgio Spaziani Testa, president of Confedilizia, called for budget law measures to facilitate housing access through tax reductions and extended building incentives. Experts highlighted the need to repurpose abandoned industrial buildings in major cities like Milan and Rome to mitigate health and safety risks.

Angelo Deiana of Confassociazioni noted that much of Italy’s residential stock predates the 1980s, necessitating strategic upgrades through smart infrastructure and artificial intelligence. Federico Filippo Oriana of Aspesi emphasized that regeneration and housing availability are complementary issues essential for national development. However, Christian Rocchi, president of the Order of Architects of Rome, warned that regeneration must move beyond slogans by resolving the bureaucratic obstacles that currently stall projects. To address demographic shifts, experts continue to advocate for a multidisciplinary ‘Agenda for Living’ to improve urban sustainability and quality of life.