In Milan, the ratio of housing prices to income has surpassed that of London. This is highlighted in a recent Financial Times article, which shines a spotlight on a situation that Milanese residents have long described as a full-blown emergency. A dramatic escalation in prices is making the city increasingly unaffordable for the very people who live there.
It is no longer just historically exclusive neighborhoods like Brera or Porta Romana, but also once-working-class areas like NoLo, which are now becoming increasingly expensive. The homes that once housed working-class families—often large and hailing from Southern Italy in search of better opportunities—have been transformed into luxury lofts and put on the market at sky-high prices.
Milan is too expensive
Often dubbed “the new London ” or “the new Dubai,” Milan has built an image for itself in recent years as an innovative, modern, and luxury-oriented city, where business and finance dominate the scene, leaving less and less room for the memory of working-class Milan. Factors such as Brexit, the growth of companies investing in the city, and the international appeal of the Italian lifestyle have contributed to driving this transformation .
However, the only thing Milan seems to have in common with London is housing prices. In the article, the Financial Times reports that, according to data from Idealista and Immobiliare.it, housing prices in Milan have risen by 57% in the last decade alone, while rents have increased by 70% since 2018. Of course, one might argue that housing prices have risen almost everywhere in Europe. That is true, but elsewhere wages have also partly kept pace with this growth—or at least have tried to catch up.
Italian wages have been stagnant for years, and this has made the problem even more evident. Today, in fact, the ratio of housing prices to income in Milan is even higher than in London. According to an analysis by the Financial Times, in Milan it hovers around 12.5, while in London it is about 10.6 times the average income, according tothe Office for National Statistics.
The result is a chain reaction: more and more Milanese are moving to neighboring towns, which are well-connected to the city, but are also contributing to rising prices there. According to data from Idealista, over the past year , home prices in the centers of the surrounding suburbs have risen by 5.4%.
Between Fashion Week and Airbnb
And while buying a home remains a pipe dream for many, even renting a studio apartment has become expensive and complicated. A city where there seems to be a “Week” every month — from fashion to design to wine—Milan is now Italy’s leading hub for events capable of attracting visitors from all over the world.
Charming, rich in history and art, though with a heritage distinct from that of Rome or Florence, Milan has chosen to focus on luxury and innovation, establishing itself as a major hub for contemporary art, fashion, design, and gourmet experiences, as well as a must-see destination for major concerts and international tours.
In this context, between one event and another, the number of apartments listed for short-term rentals on platforms like Airbnb is also growing, fueling a particularly lucrative business. According to the monitoring platform Inside Airbnb, there are now nearly 19,000 apartments in Milan listed for short-term rentals. Rather than a new London, it seems to us that Milan is turning into a new Barcelona. Only time will tell; what is certain is that the dynamics of housing prices now appear to be out of control.
