If you’ve strolled through the cobblestone alleys of Florence or wandered the medieval streets of Siena, you may have noticed a growing trend: short-term rentals in Italy are increasingly transforming once-residential neighborhoods. Many homes and apartments appear vacant or repurposed for short stays. The rise of short-term rentals in Italy’s most historic cities has created a housing issue that is garnering increasing attention from both local residents and policymakers.
Once a boon for tourism and local economies, short-term rentals are now under heightened scrutiny. Platforms like Airbnb and Booking.com have made it easier than ever for property owners to convert homes into tourist lodgings. While this was initially seen as a win-win—more income for locals, more authentic stays for tourists—the long-term consequences are beginning to show.
The Impact on Affordability
The most pressing issue is affordability. In cities like Bologna, Florence, and Rome, residents are finding it increasingly difficult to afford rent or purchase property. A significant portion of available housing stock is being taken off the market for long-term residents and instead listed as short-term rentals for tourists. According to recent studies, in central Florence alone, more than 20% of available homes are being used for short stays.
This surge in tourist accommodations drives up rental prices and reduces availability, making it especially hard for younger Italians and lower-income families to remain in the cities where they grew up. A local Florentine might find herself priced out of her own neighborhood, while apartments next door sit empty until the next wave of tourists arrives.
Cultural Consequences
Beyond affordability, there are cultural and social consequences. Short-term rentals in Italy’s historic city centers has led to a kind of hollowing out. When locals move away due to rising costs, the character of neighborhoods changes. Bakeries, greengrocers, and small local businesses disappear, replaced by luggage storage services, fast food chains, and tourist shops. The very charm that draws visitors to these cities begins to erode.
Neighborhoods that once buzzed with daily life risk becoming postcard-perfect ghost towns. Without long-term residents, communities lose the depth and richness that make them unique. And for cities steeped in history, that loss is particularly profound.
Government Response
Italian authorities are beginning to take notice and push back. Cities like Florence and Bologna have already introduced limits on new short term rental permits in designated historic zones. Venice, always a bellwether for overtourism issues, has gone further, proposing caps on tourist numbers and introducing entry fees for day-trippers.
Read more about buying properties in Florence and Bolgona.
At the national level, Italy’s government has proposed requiring hosts to register all short term rental properties in a national database. This measure aims to combat tax evasion and better regulate the market. Some proposals even suggest limiting the number of days a property can be rented out per year.
While these steps mark progress, enforcement remains a challenge. Platforms often resist data sharing, and some property owners find ways around regulations. Still, the growing concern is a sign of shifting attitudes. Where short term rentals were once celebrated, they are now being questioned as a potential threat to Italy’s cultural heritage and social fabric.
Balancing Tourism and Livability
No one denies that tourism is vital to Italy’s economy. It’s a cornerstone of local employment and brings in billions of euros each year. However, there’s a growing consensus that the balance has tipped too far.
The solution isn’t to eliminate short-term rentals altogether but to find a sustainable middle ground. Some cities are exploring hybrid models, allowing short stays in specific zones while preserving housing in others for long-term residents. Others are encouraging property owners to lease to students or young professionals instead of tourists.
Local initiatives are also gaining traction. In Rome, some neighborhoods have launched community housing cooperatives to secure affordable housing. In Milan, the municipality is investing in public housing and urban renewal projects aimed at retaining residents in the city core. Learn if it’s a good time to buy a house in Italy.
What This Means for Buyers and Investors
If you’re considering purchasing property in Italy, it’s essential to stay informed. Rules surrounding short-term rentals vary by region and are subject to change. Prospective buyers should research local regulations and consider the long-term implications of owning a rental property.
While the idea of owning a vacation home in Florence or Venice is romantic, it comes with responsibility. Choosing to rent your property long-term can support local communities and ensure your investment contributes positively to the city’s future.
Final Thoughts
Italy is at a crossroads. The tension between preserving the charm of its historic cities and accommodating the demands of modern tourism is real and growing. As short-term rentals in Italy continue to proliferate, the risk is that many beautiful places become inaccessible—not only to tourists priced out of high-end listings, but more importantly, to the people who call these cities home.
Finding a balance that supports tourism while keeping cities livable for residents is key. It’s a challenge that requires thoughtful policy, community involvement, and a shared vision for what these iconic places should look like in the years to come.
