Even as the heart of Italy’s economic engine, Lombardia finds itself grappling with a surprising and complex challenge—there simply aren’t enough homes where people want to live. Despite booming job opportunities, soaring city skylines, and lively neighborhoods, the demand for housing in Lombardia has outpaced supply. In 2025 alone, home sales are expected to reach nearly 770,000, a robust increase, yet new housing construction is moving backwards. Only about 58,000 units were added last year, which is actually fewer than the year before, leaving real estate agents scrambling to meet the needs of hopeful buyers.
Lombardia’s housing demand is booming, but new construction is falling behind, leaving buyers searching for homes that just aren’t there.
The San Siro district in Milan is a clear picture of this crisis. There, almost half of families scrape by on less than €7,000 a year, and although hundreds of apartments lie empty, illegally occupied, or are simply uninhabitable, getting access to a decent home feels like winning the lottery. Last year, around 600 families applied for public housing in San Siro, but only a handful received an assignment. The waiting lists stretch on as the community watches a former public housing office transform into a police station instead of a solution for residents in need. A significant number of public housing units in Milan are in disrepair or lie vacant, highlighting the persistent issues within the region’s housing system. Additionally, the high cost of living in the area further complicates residents’ ability to secure affordable housing.
Meanwhile, across Italy, only about 2.6% of housing is set aside for public or social use—one of the lowest rates in Europe. Over 700,000 families wait for public housing, while 40% of the nation’s public housing units desperately require repairs. All this happens as home prices in Lombardia climb ever higher. The average price per square meter is now €2,668, with cities like Como seeing a steep 17% jump. Fancy lakefront addresses fetch even more, making affordable living a distant dream for many. The limited supply of desirable properties and strict regulations only exacerbate this affordability crisis.
Strangely, Italy leads Europe in vacant homes, with nearly 9.5 million sitting empty. But don’t get your hopes up—most are in places where no one wants to move. It’s a classic case of “wrong place, wrong time,” creating a mismatch that frustrates buyers, renters, and policy makers alike.
