The Italian Ministry of Infrastructure and Transport has confirmed that efforts to address the country's housing crisis continue, with Deputy Prime Minister and Infrastructure Minister Matteo Salvini meeting the newly appointed housing commissioner Felice Squitieri to discuss the operational framework of the government's housing recovery program. The primary focus is converting underutilized and abandoned public buildings into affordable homes for families, young workers, and students affected by Italy's soaring rental market.
Program Overview
The government's housing initiative aims to:
• Identify and assess underutilized public buildings nationwide for conversion to residential use
• Expand the supply of affordable housing through strategic renovation and repurposing of existing state-owned and municipal properties
• Target the creation of 100,000 affordable units within a decade, backed by a €10 billion investment package
• Support middle- and lower-income households through subsidized rental housing and mortgage guarantee programs
The Recovery Strategy: Public Assets as Housing Solution
Rather than pursuing large-scale new construction, the strategy focuses on reclaiming the nation's underutilized public real estate inventory. Italy's public housing portfolio accounts for approximately 4% of total housing stock—one of the lowest rates in the European Union—and has suffered from decades of underinvestment.
Under Squitieri's mandate, the government is conducting a comprehensive nationwide audit of state-owned and municipal properties to identify buildings suitable for conversion to livable apartments. This inventory exercise, supported by the public investment agency Invitalia, will establish a prioritized list of projects based on regional housing demand and structural feasibility.
The legislative framework includes Decree-Law 66 of May 7, 2026, subsequently converted into Law 116 on July 2, 2026, which established the commissarial structure and granted streamlined permitting authority for housing-related projects.
What This Means for Residents
For renters and first-time buyers, the program operates through two principal mechanisms: subsidized rental housing and mortgage guarantees.
On the rental side, the plan emphasizes housing sociale (social housing)—a category targeting middle-income residents who earn too much for traditional public housing but struggle with market-rate apartments. This includes remote workers, separated parents, university students, and young couples. The program encourages private-public partnerships for mixed-tenure developments.
For buyers, the government has extended the First Home Guarantee Fund managed by Consap through December 31, 2027, designed to lower financing barriers for first-time homebuyers who lack substantial savings or established credit histories.
Existing tenants in public housing (ERP) may have opportunities to purchase their apartments under terms being finalized by the ministry, with implementing regulations expected within 60 days of the law's formal entry into force.
Regional Coordination and Implementation
While the national plan sets the framework, regional governments are developing complementary housing initiatives, many transitioning from temporary measures into permanent territorial regulations. Regions like Marche and Puglia have integrated housing expansion incentives into their urban planning codes, prioritizing building renovation to limit soil consumption.
Squitieri's team will coordinate with local authorities to align project timelines and avoid resource duplication, particularly in metropolitan areas where multiple state-owned and municipal properties may be available for conversion.
European Context: Italy's Housing Evolution
Italy's housing policy has historically lagged Western Europe. As of 2016, the country spent just 0.13% of social expenditure on housing—far below the EU average of 2%. By comparison, France allocates 2.57% and Germany 1.94% of social expenditure to housing.
Across Europe, housing prices have surged 60% since 2013, with rents climbing 20% in the same period, creating affordability challenges for middle-income earners. In response, the European Commission launched the European Affordable Housing Plan in December 2025, focusing on increasing supply, mobilizing private capital, and protecting renters.
Italy's revised approach represents a shift toward structural models seen in Austria, Denmark, and France, which maintain large private rental sectors alongside robust social housing provision.
Next Steps and Timeline
Squitieri's office is assembling a sub-commissioner team and technical staff to oversee regional rollouts. The program's success depends on the efficiency of the property audit, effectiveness of streamlined permitting procedures, participation of private developers in mixed-use projects, and regional governments' ability to integrate national funds with local housing plans.
The housing initiative attempts to counter Italy's bureaucratic complexity through a commissarial model granting extraordinary powers to streamline procedural delays, though execution discipline and political commitment will be essential to sustained progress.
Strategic Framework: Three Core Pillars
The national housing plan is organized around three strategic pillars:
Recovery of underutilized public assets: Identifying and converting vacant or underused public buildings into residential units
Expansion of social housing supply: Creating affordable units for middle- and lower-income households through mixed-tenure developments
Public-private partnerships: Encouraging private investment in construction in exchange for streamlined approvals, contingent on affordability commitments
What This Means for Homebuyers and Renters
For people navigating Italy's tight housing market, the practical focus is on monitoring developments as the national property inventory progresses and regional allocation lists become available. Those considering home purchase should verify eligibility for First Home Guarantee programs before the December 31, 2027 deadline. Renters in high-demand cities should monitor regional housing authority announcements as the inventory assessment concludes.
The program represents a long-term structural initiative aimed at expanding affordable housing supply nationwide. The full impact and measurable results will emerge as the implementation phase progresses and specific projects advance from planning to execution.
