Bad news for those living in Rome or thinking of moving to the capital: rent absorbs 65 percent of the average net salary of Romans.
Yes, you read that right. This is not an exaggeration, not an alarmist slogan. These are the cold, concrete numbers from the most comprehensive and recent analysis available on the European housing market.
A situation that to call “critical” is almost an understatement, yet it is precisely what thousands of people in the Italian capital experience on a daily basis.
But how did we get to this situation? And most importantly, is Rome really the most disrupted city in Europe?
The answer comes from an international study that paints an alarming picture of the housing market in the Old Continent.
The Deutsche Bank Research Institute Study: a picture of the European housing market.
In 2025, the Deutsche Bank Research Institute conducted the most comprehensive analysis yet of wage-rent ratios in Europe’s major urban centers.
The study looked at 69 world cities, including 28 European ones, directly comparing average net wages and rental costs for one-bedroom apartments in urban centers.
The study highlights few happy oases:
- Geneva: 29%
- Luxembourg: 34%
- Frankfurt: 34-35%
- Zurich: 35%
- Helsinki and Vienna: under 40%
But what does the study specifically say about Italy? Here’s the bombshell: Italy is one of the most problematic European contexts for housing affordability.
It’s not just an impression you get when you’re looking for housing. It is a scientific fact that confirms what you feel on your skin every day.
Of the three Italian cities analyzed in the study (Rome, Milan and Florence), none can be considered “livable” from a housing perspective.
Milan reaches 71 percent of the salary absorbed by rent, Florence – surprise – is even more expensive with average monthly costs of 1,806 euros (and peaks of 2,200 euros in the historic center), while Rome settles at 65 percent.
Rome’s housing crisis
Let’s go into detail, numbers in hand. In Rome, according to the Deutsche Bank 2025 report, the average cost of a one-bedroom apartment is between 900 and 1,100 euros per month.
If you are looking for a one-bedroom in a central area, the kind of housing a single person would look for, we are already at 2,000 euros per month. This is not a joke, these are the real figures you find on Immobiliare.it.
But the real problem is the relationship with salaries. In Rome, the average net salary is about 1,380-1,400 euros per month (much lower than in Milan, to say).
With an average rent of 1,000 euros, the calculation is brutal:
1,000 / 1,400 = 71.4 percent, rounded up to 65 percent in the study (probably considering slightly suburban areas).
What are you left with? A little over 400 euros to live on.
And here the real trade-offs begin: you don’t take the gym, you reduce your outings, you give up new shoes, you can’t afford to get sick (because medicine and visits cost money), you save nothing.
The “30% Rule”: the standard that Rome completely disavows
There is a recognized international standard: the “30% Rule.”
Basically, according to globally established financial guidelines, the rent should never exceed 30 percent of the net monthly salary.
This parameter stems from simple economic logic: if you spend more than 30 percent of your income on housing costs, you do not have enough money left over to cover the other necessities of life (food, transportation, energy, medical care, education).
It is a simple calculation of personal affordability.
In Rome, the ratio is more than double this limit.
Living in Rome in 2025, a serious economic trade-off
If you live in Rome or are thinking of moving there, know that you are facing one of the most critical housing situations among major European capitals. Not because Rome is expensive at all (it is, but not at the top of the world list), but because wages are low and the ratio is completely unbalanced.
Data from the Deutsche Bank Research Institute 2025 leave no doubt: Rome is a city where the cost of housing has exceeded the limit of average affordability.
What remains is to figure out how we will continue to live there.