Is Renting Actually Cheaper Than Buying Right Now in Milan?

For many Milanese wrestling with where to live, the math has rarely been so stark: the average tenant now pays several hundred euros less per month than a homeowner buying the same flat—especially in Milan’s central and up-and-coming neighborhoods.

It matters more than ever as rising mortgage rates and record property prices squeeze locals on both fronts. Since the Banca d’Italia lifted its base rate to 4.25% last autumn, monthly loan payments in the city have surged, with would-be buyers forced into longer commutes or smaller flats—if they can buy at all. Meanwhile, Milan’s rental shortage has put further upward pressure on rents, raising the stakes for anyone searching for a new place this summer.

Brera, Navigli and the City’s New Price Divide

Nowhere is the affordability gap wider than in Brera and Porta Nuova, where values often top EUR 11,000 per square metre, according to Agenzia delle Entrate. Renting a one-bedroom on Corso Garibaldi averages EUR 1,650 per month, while a comparable flat would cost nearly EUR 650,000 to buy. Even with a 20% deposit, monthly mortgage repayments now hover around EUR 2,250—excluding fees and taxes. "Buying is a luxury few first-time buyers can now access without significant family help," said a local real estate agent, speaking on background.

Tenants in trendy Navigli fare slightly better. On Via Vigevano and along the Naviglio Grande canal, rental prices have climbed to an average of EUR 1,300 for a one-bed, but purchase prices—at roughly EUR 8,000 per square metre—mean ownership remains out of reach for many early-career professionals and creatives the area attracts. In ascendant Isola and Nolo, monthly rents have surpassed EUR 1,000 for small flats, but buying still commands a 50% premium in out-of-pocket monthly costs at current rates.

Tracking the Numbers in the City’s Top Districts

According to the Milan branch of Immobiliare.it, the city’s median rent now stands at EUR 20.4/sqm/month, or about EUR 1,020 for a 50 sqm apartment—up 7% compared to July 2025. Meanwhile, the average price to buy across Milan is EUR 5,300/sqm, with sharp peaks in Brera, Porta Venezia, and the Duomo area. For a 50 sqm flat at the citywide average, that’s EUR 265,000. Assuming a 30-year mortgage at today’s 4.6% average fixed rate, the monthly hit is just under EUR 1,350—before service charges and taxes.

The calculation changes for those with large savings. With a 50% down payment, buyers now edge ahead in monthly costs after five years, but that’s only if prices rise steadily and interest rates moderate—two variables few experts will wager on after the turbulence of the past 18 months.

Local homebuyer programs like "Prima Casa" tax relief soften the closing costs, but don’t go far in remedying the high monthly commitment. Meanwhile, the city’s main landlord association, APPC Milano, says rental supply is tightest in semi-central postcodes around Città Studi and Bicocca, where prices have climbed fastest since last year’s wave of students returned to in-person classes.

Weighing Options as Milan Heats Up

For now, tenants appear to have the edge on raw monthly cost, especially in central and popular young districts. But with rents climbing and home price growth stabilizing, would-be buyers who can assemble large deposits may want to keep a close eye on further interest rate policy moves from the European Central Bank. And for anyone seeking to move this autumn, locking in a lease is likely to be the financially safer bet—at least until mortgage costs subside or the city’s long-promised new rental housing stock comes online. Milan’s housing market, like its summer streets, remains hot—and there are no signs of a cooldown just yet.