What's the verdict on transient rentals?

In recent years, the increase in mortgage costs has given a boost to the rental market in general, but especially to the rental of rooms to students and workers: demand has been particularly high, not only in major cities. Last year, the rise in rental prices for rooms in university cities sparked widespread protests from students, which in some cases led to some response from the institutions. In this context, there has been a noticeable growth in so-called temporary rentals, based on rental contracts of no more than 18 months, which seem to partly meet the needs of both landlords and those seeking accommodation, especially thanks to the flexibility it offers both parties. According to an analysis released by the Immobiliare.it observatory, one of Italy's leading real estate listing platforms, in the past year, demand for temporary rentals has increased almost everywhere, with Rome and Milan ranking first and second (respectively +65% and +59%), followed by Bari (+57%) and Turin (+52%).

The increase in demand for short-term rentals has caused a further rise in prices, which have grown by 17%; moreover, despite the strong demand, the supply shows no sign of decreasing – on the contrary, according to Immobiliare.it, it has increased by 39% in Italy. The most significant increase occurred in Milan, where the presence of temporary rentals has more than doubled compared to last year. This type of contract has become popular because it is a format that appeals to both landlords, as it is profitable and less risky, and tenants, especially students and young workers – who do not wish to commit long-term and appreciate the flexibility it offers. The same is true for young couples, particularly those who have not yet found the right solution, are not ready to buy a home together, or cannot afford to, waiting instead for further interest rate reductions.

The issue of being an independent 20-something in Italy

Along with Greece, Portugal, and Spain, Italy is one of the major European countries where young people tend to become independent later: on average, in our country, those living with their parents leave home no earlier than thirty years of age. The reasons are complex and multifaceted, involving both economic and social dimensions. One of the most significant reasons is related to the cost of living independently, in relation to the salary earned – which in Italy is already quite low on average compared to other major European countries. This is even more true for young people, who have typically only recently entered the job market. The phenomenon worsens especially in large cities, where the cost of housing and the cost of living in general is higher. In Italy, the first destination for young people leaving their parents' homes is shared housing, which, however, has also become more expensive in recent years. Despite being a solution not everyone appreciates, particularly among those who have completed their studies, have a steady job, and are in a more or less stable relationship, it remains the only viable option for many, even among workers. Living alone presents costs that are prohibitive for many people: on average, a person living alone spends almost 50% more than someone living in a couple. And while taking some time with a temporary rental is seen as the first step toward independence, the lower contractual obligations and the 18-month limit are not appreciated by everyone. In particular, following the boom of this format, many accuse the decrease in availability of traditional rentals on the market, especially in major cities – forcing many people looking for accommodation to be unable to make long-term plans.