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Home Affordability in Italy

41 Pages Posted: 17 Sep 2007  

Giovanni D'Alessio

Bank of Italy

Romina Gambacorta

Bank of Italy

Date Written: July 2007

Abstract

During the last two decades, house prices in Italy have increased dramatically in real terms, particularly in large towns and cities; the rise in rents has been even more marked. This paper analyses home affordability for households, considering both the rent and the property markets. In particular, it looks at the trends in house prices, rents, household income, cost of loans and other elements affecting the demand for housing (such as population growth). The paper also assesses how widespread home difficulties are among the population, considering the physical and financial aspects, both actual and potential. The role of public housing in helping to the problems is also discussed. Despite the wide diffusion of home ownership, home-related distress affects 20 per cent of Italian households.

Notes: Downloadable document is in Italian.

Keywords: estate, house affordability

JEL Classification: D10, R21, J11

Suggested Citation

D'Alessio, Giovanni and Gambacorta, Romina, Home Affordability in Italy (July 2007). Bank of Italy Occasional Paper No. 9. Available at SSRN: https://ssrn.com/abstract=1014580 or http://dx.doi.org/10.2139/ssrn.1014580

Giovanni D'Alessio (Contact Author)

Bank of Italy ( email )

Via Nazionale 91
00184 Roma
Italy

Romina Gambacorta

Bank of Italy ( email )

Via Nazionale 91
00184 Roma
Italy

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