Milan

In Milan, the housing market is marked by high demand, rising prices, and a persistent shortage of affordable homes, especially for renters and younger residents. About 61% of Milan households own their homes, with roughly 39% renting—a rental share notably higher than the national Italian average. In 2025, the median price to rent an apartment in Milan is around 23–25 euros per square meter per month. To purchase, the median price is approximately 5,500–6,000 euros per square meter, with central areas commanding even higher prices.

Publicly owned housing makes up just under 12% of Milan’s total housing stock. The city manages about 75,000 public housing units out of 650,000 overall. Demand far outstrips supply, with tens of thousands on waiting lists. Milan’s approach to affordable housing combines public (statale/municipal) housing, which is strictly targeted at the lowest income brackets, and social housing, which includes both public and privately operated projects for a broader range of moderate-income residents. Social housing units are typically available at rents 20–30% below market rates, and in new developments, city policy now mandates that 40% of units be affordable, with half for rent.

Thus, in Milan, “public housing” refers to municipally or state-owned housing for the most vulnerable groups, while “social housing” refers to a wider mix of tenure and income levels, often delivered through public-private partnerships with regulated rents and ownership options.

Milan’s housing crisis is characterized by a persistent gap between housing costs and residents’ incomes. The average price to buy a home in Milan rose by nearly 40% from 2019 to 2025, making the city the most expensive in Italy with average sales prices around 5,400 euros per square meter. Rent has increased by 10–20% over five years, with average studios now costing 1,000 to 1,500 euros per month in central districts, and one-bedroom apartments showing the highest and most stable yields for investors. Housing demand, especially for rentals, continues to outstrip supply, leading to faster turnover of available units and increased competition—apartments spend less time on the market than ever before.

Particularly affected are lower-income households, young professionals, and students, as well as families with average incomes who require more space but struggle to meet soaring purchase prices or market-level rent. A typical worker in Milan now needs more than 11 years of salary to buy a home. As a result of limited supply and high costs, the disconnect between income levels and housing expenses is reshaping Milan’s social fabric, making it increasingly difficult for broad segments of the city’s population—especially newcomers, younger residents, and the non-wealthy—to secure affordable, stable housing.

The Milan city administration is actively responding to affordable and sustainable housing challenges by enforcing new targets and multifaceted programs. The city’s master plan now requires that new residential projects over 10,000 square meters dedicate at least 40% of their space to affordable housing, with half of these units for rent. Urban regeneration projects are leveraging planning incentives to boost supply. To encourage sustainability, Milan prioritizes high energy standards and low-carbon solutions in new social housing, as seen in initiatives aiming for zero-carbon operation by 2050.

Key programs include the “Milano 2035” coalition, which creates affordable, flexible coliving arrangements for people aged 18–35, fostering social solidarity and including temporary housing for those facing emergencies. The city introduced a rent bonus for under-35s with lower incomes, providing up to 2,400 euros to support first jobholders, though this support covers only a small fraction of average rents.

The “C40 Reinventing Cities” initiative brings international partnerships to develop hundreds of affordable rental units in multiple districts, capping three-room rents at 500 euros per month. Sustainable developments like the Merezzate district integrate energy efficiency, green mobility, and community spaces and deliver rents roughly 30% below market.

These measures are the administration’s cornerstone strategies to increase the supply of affordable and sustainable homes, especially for young people and low-to-moderate income residents. However, bureaucratic and zoning constraints still slow project delivery.

In Milan, housing cooperatives play a key but relatively limited role in the city’s complex housing ecosystem. Around 8,000 units within the city are managed by more than 80 cooperatives, representing a modest share compared to Milan’s 650,000 total housing units. Though the exact percentage is not specified, the cooperative sector is notably smaller than public housing, but remains essential for affordability and social inclusion.

Cooperative housing in Milan is developed through strong public-private partnerships, with the city administration working closely with organizations such as CCL (Consorzio Cooperative Lavoratori). Recent years have seen the launch of major projects in regeneration areas, like Porta Romana and Lambrate, delivering new units for both sale and rent at rates significantly below market levels. These projects emphasize participatory community living, environmental sustainability, and energy efficiency, aligning with city-wide targets for zero-carbon housing by 2050.

The city actively promotes cooperatives by including them in planning incentives, mandating that at least 40% of large new residential developments be allocated to affordable housing, of which half must be for rent. Other initiatives include collaborations to create affordable student housing, youth coliving options, and energy-efficient retrofits, fostering social mix and community participation. Overall, Milan sees housing cooperatives as vital, though still a small-scale, instrument for addressing affordability and sustainability in a rapidly evolving urban market.