The effort rate when buying a home
In the third quarter of 2023, the rate of economic effort to buy a home in Italy stood at 19% of the average annual income. This value marks a slight decrease of 0.9% compared to the same period of the previous year. The analysis conducted by Idealista’s Research Office examined the purchase of an average apartment with two rooms, comparing the installments of a standard mortgage with the average incomes of
Italian families.
The effort rate represents the weight that buying a home has on the purchasing power of families. In particular, it is calculated as the annual share of net income allocated to the payment of a typical mortgage, characterized by an average duration and interest rate
.
Regional disparities in the effort rate
Idealista’s report highlights a varied situation at the regional level. In 34 capitals, the effort rate exceeds the national average of 19%, reaching significant peaks in cities such as Venice (39%), Bolzano (35.2%), Milan (34.2%) and Rimini (33.6%). These figures indicate that buying a home in these areas represents a significant economic challenge for families.
On
the contrary, most Italian capitals have an effort rate lower than the national average. In fact, 63% of the cities monitored show a lower effort rate for the purchase of a three-room apartment, with values that vary from 18.6% in Vicenza to 6.3% in Biella, which stands out as the capital with the lowest
effort rate in Italy.
Falling and rising trends in some cities
According to the survey, 61% of Italian capitals recorded a drop in the economic commitment needed to buy a home compared to the previous year. The most significant reductions are observed in Bolzano (-6.5%), Milan (-5.5%) and Matera (-3.6%).
However, in 33 cities there was an increase in the effort rate, with the largest increases in Gorizia and Padua, by 3% and 2% respectively.
In provincial terms, Bolzano continues to have the highest effort rate for buying a home (39.3%), followed by Rimini (34.5%) and Imperia (34.2%). In 34 other provinces, the effort rate exceeds the national average, but remains below the critical limit of a third of household income, with provinces such as Naples (29.1%) and Florence (25.7%) showing significant economic commitment
.