Milan

Milan’s housing market in 2025 remains highly dynamic, with property prices and rents at historic highs and ongoing tension between housing demand and supply. The median purchase price for residential property is approximately €5,500–€5,512 per square meter, with luxury homes reaching €10,000–€15,000 per square meter in central neighborhoods. Median rents citywide are about €25–€35 per square meter monthly, meaning a typical 40 sqm apartment in central Milan rents for €1,000–€1,400 per month. Demand for rentals increased by 4% in 2024, and vacancy rates are lowest in central locations.

Regarding tenure, about 38% of Milanese households rent their home, while 62% are owner-occupiers—a much higher rental percentage than the national average for Italy. Publicly owned (ERP) housing constitutes a small share of Milan’s housing stock; long waiting lists far outstrip public supply. Social housing (“housing sociale” or “affordable housing”) is distinct from classic public housing, providing regulated rents and sometimes combining public and private investment to serve those with incomes too high for ERP but too low for market rent. Social housing’s share remains limited but is growing through new projects.

In summary, rising costs, a significant rental sector, persistent supply shortages, and a nuanced distinction between public and social housing define Milan’s 2025 housing landscape. All amounts are in Euros.

Milan’s housing crisis in 2025 is marked by severe affordability issues, acute supply shortages, and socioeconomic disparities. The city’s housing market has become increasingly inaccessible, especially for lower-income families, students, and younger residents. In neighborhoods such as San Siro, 44% of families survive on less than €7,000 per year, yet over 600 apartments remain vacant or unsuitable for habitation, while waiting lists for public housing far exceed available supply. Demand is persistently strong, reflected in a 7% annual increase in residential sales, but new construction remains insufficient and much of the existing housing stock is aging or in disrepair. The crisis is exacerbated by Milan’s appeal to investors and high-earning individuals, driving up prices and further excluding vulnerable groups. Socioeconomic inequality is pronounced: working-class districts and young professionals face the brunt of the crisis as luxury and new-build properties absorb investment. Student housing is a particular pressure point, with significant investor activity but persistent demand outstripping supply. Ultimately, the crisis affects a broad swathe of Milan’s population—low- and lower-middle-income families, young workers, and students—while long-term residents endure declining public housing options and heightened competition for affordable apartments.

The current Milan city administration addresses affordable and sustainable housing by mandating that all large new residential projects dedicate at least 40% of their floor area to affordable housing, with a minimum of 20% reserved for rental units. The administration’s recent targets are to deliver more than 8,000 new affordable units citywide and to increase the provision of housing for those ineligible for traditional public housing but unable to afford market rates.

Key programs include large-scale urban regeneration linked to the city’s masterplan and participation in the C40 "Reinventing Cities" competition. In this framework, at least 500 new dwellings across six municipal sites are set to have rents capped well below market levels. The city also encourages public-private partnerships, leveraging both local and national funds to stimulate student and family housing supply.

Notable projects include the post-Olympic Porta Romana Village, which will provide 1,700 student beds—about 30% at subsidized rates averaging €430/month—using sustainable, energy-efficient facilities. The Merezzate district is another flagship, delivering over 600 apartments at capped prices, aligned with strict municipal affordability and sustainability standards, and supported by public investment. Across these activities, integrated urban planning and climate targets (like LEED Gold buildings and zero operational emissions) are central, ensuring Milan’s policies tackle both affordability and environmental goals simultaneously.

Housing cooperatives in Milan play an important but still limited role, primarily aiding middle- and lower-income groups excluded from both the private market and traditional public housing. Recent data indicate approximately 17,000 dwellings in the Milan area are cooperative-owned, though this represents only a small share of the city’s overall housing stock. The cooperative sector is currently growing through investments in urban regeneration and sustainable, community-oriented living, especially within the Lombardy region. Innovations include mixed finance models—often blending public and private resources—and an emphasis on affordability, long-term social management, and resident mutuality.

The city of Milan supports cooperatives through urban planning rules that favor affordable, community-managed housing, participation in initiatives such as the C40 "Reinventing Cities" competition, and alignment with national and EU financial platforms to scale investment and delivery. Cooperative housing projects are increasingly integrated with climate and sustainability objectives, with some districts designed for zero carbon emissions and inclusive, shared services. Milan’s policy approach reflects a multi-stakeholder commitment to expanding the cooperative and social sector, but its numerical footprint remains secondary compared to owner-occupied and private rental housing overall.