Milan’s Rental Vacancy Rates Drop to Historic Lows, Fueling Fierce Competition for Tenants

Finding a rental apartment in Milan has turned into a high-stakes contest. This week, the city’s rental vacancy rate slipped below 2% for the first time in a decade, property analytics firm Immobiliare Milano confirmed on Thursday. That’s left would-be tenants crowding open homes and bidding up rents from Porta Romana to Isola.

Surge in Demand, Scarcity of Supply

The shortage couldn’t come at a worse time. Milan’s population crept past 1.4 million in 2025, swelling with fashion professionals, digital nomads, and university graduates looking for footholds near the jobs clustered along Via Turati and Corso Como. Brera’s art galleries and cafes lure high-income expats, while the Navigli and Nolo districts, once bastions for students, now command rents exceeding €1,700 per month for a modern one-bedroom.

“People show up with bank statements, job offers and ready-to-sign contracts—just to get thirty seconds with the landlord,” says Sergio Rossi, a property manager who handles listings in Porta Venezia and the city centre. The competition has pushed even smaller agencies like Abitare Milano to implement waitlists for viewings, a situation almost unheard of before the 2021-22 energy crunch.

Prices Climb, Options Shrink

The numbers reinforce what house-hunters already know. Data from Nomisma shows Milan’s average asking rent hit €24.40 per square metre in June—up 7% year-on-year. Vacancy rates are lowest in central zones, notably Centro Storico (1.3%) and Brera (1.5%), according to a mid-year survey by the municipality. In Isola, the city’s northern creative hub, fewer than 50 purpose-built rental apartments are currently available—down from 140 at this time last year. Crowds gather outside agencies on Via Farini before new listings are posted.

“The volume of short-let conversions hasn’t helped,” notes Teresa Parodi, an urban planning specialist at Politecnico di Milano. The popularity of Airbnb and other holiday rentals—now covering over 15,000 units citywide—has squeezed the supply of regular long-term leases, especially around Cadorna and Bocconi University.

Rent or Buy: A Tight Calculation

With mortgage rates hovering near 4% and Milan’s average sale price surpassing €5,100 per square metre, buying remains out of reach for many young professionals and families. A two-bedroom in Navigli now routinely lists for over €540,000, according to Tecnocasa. Meanwhile, those still renting are urged to act fast: major operators like Gabetti and SoloAffitti recommend gathering documents in a single digital file and contacting agencies the moment a listing surfaces. The city council, aware of the squeeze, has allocated €31 million for a 2027 expansion of social and affordable rental housing in Cimiano and Quarto Oggiaro, but relief is likely years away.

Those seeking a home now face few easy options. Groups like MilanoAbitare advise leveraging university networks or employer-sponsored relocation programs, especially in high-demand zones. One practical tip: consider up-and-coming areas such as Lambrate or Affori, where vacancy rates—though shrinking—remain a touch higher, and landlords seem slightly more open to negotiation.