How Many Salaries Does It Take to Buy a Home? Florence’s Housing Dilemma

For the average Italian worker, buying a home typically requires the equivalent of six years of salary—69 paychecks, to be exact. However, this national average masks significant regional disparities, with Florence standing out as one of the most challenging markets for prospective homeowners.

In Florence, purchasing a 60-square-meter apartment in a semi-central area demands approximately 151 months—more than 12 years—of the average annual salary, estimated by ISTAT to be €24,000 for private-sector employees. Florence ranks third among Italian cities with the highest salary-to-home-price ratios, surpassed only by Rome (13.7 years) and Venice (13.3 years).

Rising Prices, Stagnant Wages

A study by Il Sole 24 Ore, drawing on data from Scenari Immobiliari and ISTAT, highlights a growing gap between property prices and wages. Over the past five years, urban property prices have risen by 7.3%, while salaries have increased by just 6%. Florence has not escaped this trend, with home prices in the city rising by 9.7% during this period—the fourth-highest increase in Italy.

This housing cost surge is attributed to heightened demand for short-term rental properties, fueled by tourism and student populations. Investment-driven purchases have driven up prices, making homeownership increasingly inaccessible for average workers, particularly young professionals.

Speculation and Short-Term Rentals

“The rise in residential investments has created a vicious cycle,” says Mario Breglia of Scenari Immobiliari. “Higher liquidity, coupled with booming tourist and student demand, has inflated property prices, particularly in sought-after cities like Florence.” Investors often target these markets to capitalize on short-term rental opportunities, sidelining local workers in the process.

Florence’s housing crisis also reflects a broader national divide. While some cities—mainly in southern Italy—have seen decreases in housing costs relative to wages, Florence and other northern and central cities have become less affordable.

Comparing the Extremes

At the opposite end of the spectrum, smaller cities like Avellino, Oristano, and Agrigento offer much more accessible housing markets, where buying a home requires less than 40 months—just over three years—of salary. Conversely, in Venice, Rome, and Florence, housing costs are climbing steeply, leaving many young residents reliant on family support or resigned to renting.

A National Challenge

The data underscores the growing inequality in Italy’s housing market, particularly in its most desirable cities. Policies aimed at addressing speculative investments, increasing the availability of affordable housing, and curbing the expansion of short-term rentals could help rebalance the scales. Florence, for instance, has recently introduced measures to refund property taxes for homeowners who switch from short-term tourist rentals to long-term leases.

For now, however, the dream of homeownership in cities like Florence remains elusive for many, as the gap between salaries and property prices continues to widen.