In Italy, the dream of owning one’s own home is becoming increasingly difficult to realise for the younger generation. According to a recent survey conducted by Deloitte, 7 out of 10 young people believe that they will not be able to buy a house or start a family if the economic situation does not improve. This alarming figure reflects a reality in which young people, caught between economic crises and precarious employment, are beginning to resign themselves to a life of renting.
A historical trend
This trend is particularly significant in a country like Italy, where buying a house is traditionally considered an important life goal. Currently, more than 74% of the Italian population lives in owner-occupied homes. However, the outlook for young people is far from rosy, especially in light of the recent decrease in the first home bonus for the under 36s provided for in the last Budget Law.
The current picture is already problematic: in 2020, almost 70 per cent of homeowners were over 50 years old, while the under-36s represented only 1.5 million out of a total of 25 million owners. This trend is fuelled by several factors, including the difficulties of young Italians to enter the labour market, the precariousness of contracts and the increase of interest rates on mortgages in the last two years (although now declining).
Valentina Lagasio, a researcher in Economics of Financial Intermediaries at Rome’s Sapienza University, explains to La Repubblica that ‘rising property prices and challenges in accessing credit have made it difficult for younger families to buy a house. Today, very few people can afford a mortgage, while inflation has increased expenses and wages in Italy have been stagnant for thirty years.
The first home bonus
The first-home bonus, introduced in 2021, provided for young people with an ISEE of less than EUR 40,000 with a state guarantee of up to 80 per cent of the value of the property, together with tax exemption. Currently, only the guarantee remains, which is often not enough. As the economist points out, ‘it is clear that before granting the loan (with or without bonus) the bank also assesses the income that the individual can guarantee. It means that almost only those who have a stable job or a guarantor can access the bonus.’
In conclusion, the current situation poses significant challenges for young Italians aspiring to property ownership. With rising costs, job insecurity and difficulties in accessing credit, the dream of home ownership is increasingly becoming a pipe dream for many, leading to a change in the expectations and lifestyle patterns of the new generations.
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