The State of Tuscany’s Housing: A Comedic Chaos
Ladies and gentlemen, gather around because we are diving into a housing report that’s more tragic than a Shakespearean play, and trust me, none of us want to be the tragic hero here!
Yes, we’re talking about Tuscany—a land famous for its bucolic beauty, exquisite wine, and now, apparently, a housing crisis that could rival an episode of EastEnders!
So, grab a glass of Chianti, and let’s unpack this delightful disaster.
Real Estate: The Plunge Into Oblivion
First off, we’ve got real estate transactions plummeting by a whopping -13.9%.
I mean, one minute you’re considering an airy villa with a view of the rolling hills, and the next, it seems like the only action you’re getting is on your pizza delivery app!
And if you thought that was bad, brace yourself: purchases with mortgages? Oh, they’re not just dropping—they’re nose-diving at -30.9%. Forget sky-high interest rates; these numbers are climbing mountains (and not the scenic kind).
“It takes an average of 7 years of income to purchase a house in Tuscany. Or, if you’re prepared to stretch finances to breaking point—23 years. Welcome to the rollercoaster of homeownership!”
The Rental Market: The Snail’s Pace
Now, let’s talk about the rental market, shall we? Apparently, it’s stagnating at a pace so slow even a tortoise would think twice about it.
Sure, there’s a marginal increase of 0.3% in registered contracts, but let’s be real—when’s the last time a 0.3% increase made headlines? We might as well throw a party for snails crossing the road!
Rentals for residential properties are dipping, creeping downward while we see commercial rentals rising. Ah yes, because every tourist needs a quaint little shop to buy their *I love Tuscany* t-shirt, right?
Public Housing: A Comedy of Errors
You have to hand it to the government; they’ve got a knack for *not* financing rent support funds.
It’s like being invited to a feast but being told to bring your own sandwich—rude! The Social Rental Fund got slapped with a budget cut, leaving just over 12 million euros for an *allegedly* housing-crisis-ridden region.
It’s like giving a starving person a salad and saying, “Hey, enjoy that health kick!” Listen, it’s going to take more than a vegan meal to satisfy this housing hunger!
The Eviction Surge: A Sad State of Affairs
And if you thought the previous numbers were grim, hang on to your hats!
Eviction requests have soared, rising by a jaw-dropping 163% since last year.
In 2023 alone, Tuscan municipalities saw a staggering 8,604 enforcement requests. If that doesn’t make you sit up straight in your overpriced rental or crumbling public housing, I don’t know what will!
Words of Wisdom
Now, as President Eugenio Giani puts it, “As a Region, we believe in the social value of the home,” which, judging by the numbers, seems more like a fairy tale than reality.
It’s almost like saying, “Hey, don’t worry about the fire behind you, let’s focus on this lovely campfire.”
Yes, there’s regional investment in housing plans—good for them! But without those national funds, what are we left with? A beautifully decorated facade hiding a structurally unsound reality.
Conclusion: The Last Laugh
In conclusion, Tuscany’s housing report is less of a report and more of a cautionary tale—complete with demographic decline, unaffordable homes, and an eviction crisis that would make even Robin Hood weep.
So, what’s the takeaway? If you find that charming Tuscan villa, keep the cork popped and your wits about you because you’ll need both to navigate this housing jungle.
In the end, it’s not just about finding a place to live; it’s about surviving the comedy of housing errors—and possibly turning it into a sitcom!
Real estate transactions are significantly decreasing (-13,9), Purchases with mortgages are dropping dramatically (-30,9%), the rental market stagnates.
And again, Public housing policies continue to develop in support of the less well-off classes (+453 ERP accommodations), but with chiaroscuro on the financing side (the Government has no longer financed the rent fund and the one for innocent arrears).
These are just some of the elements contained in Thirteenth monitoring report on housing conditions “Living in Tuscany”, curated by the Social Observatory of the Tuscany Region and Anci Toscana, with the collaboration of the Regional Housing Policies and Irpet Sector.
The volume offers an in-depth analysis of the main phenomena that influence housing quality in the region: socio-demographic and economic dynamics and the conditions of the real estate and public housing market.
The presentation of the report took place this morning in Florence in the auditorium of Sant’Apollonia, it was also an opportunity for discussion on the data and themes relating to the sphere of living and the difficulties experienced by families in this area between the various subjects present, administrators, trade unions, companies for the home, representatives of the third sector and municipalities.
The data relating to the report relate to 2023 but the reflection was developed on an absolutely topical level.
“As a Region we believe in the social value of the home and living issues, for a welfare system that provides integrated responses to people’s needs and for the social cohesion of our communities” said the President of the Region Eugenio Giani.
“In the face of a national context in which we have stopped investing in housing policies – he continued – we continue to invest in the restoration and expansion of the ERP assets, in housing at sustainable rents, in urban regeneration” .
In this regard, the regional councilor for social policies and housing Serena Spinelli indicated the main actions underway: “We are proceeding with the implementation of the regional Housing Plan, with a positive response towards the expected objectives: for the renovation of public housing we have made 10 million available to the municipalities and the work in the approximately 470 homes involved will be concluded in the first months of next year. Furthermore, for the construction of new properties, the Region is using 30 million of community resources and has published a specific tender, for which the ranking for the financing of the projects will be defined by the end of the year. At the same time, we are in line with the times set by the Pnrr for maintenance, energy efficiency and anti-seismic improvement works which will concern as many as 2,700 homes in the regional territory”.
“It is quite clear – summarizes the councilor – that, faced with a very strong need for investments in housing policies, the Region is doing its part, with all the economic commitment possible and the utmost attention to the timely use of resources .
Unfortunately we are faced with a great lack of resources coming from the national level. The housing crisis should be an absolute priority, but the Government continues to give no concrete response.”
“The housing emergency – he said Susanna Cennipresident of Anci Toscana – is one of the most pressing problems for municipalities, which mayors find themselves facing on a daily basis. The data from the Observatory, in which Anci Toscana actively collaborates, tell us how it is increasingly difficult for many citizens to access housing; and the survey addressed to the Municipalities confirms this suffering. The latest ‘house bill’ has accepted some important amendments from Anci: I am thinking of the more streamlined use of resources deriving from disposals or the inclusion of the building heritage in the recovery plan of the Municipalities. But it is certainly not enough: just remember the government’s failure to refinance rent support. Housing poverty is now a widespread condition, which we must combat with every means. For this reason, Anci Toscana will continue to be alongside the Region to implement fair and sustainable policies, and experiment with new forms of living that can help emerge from the emergency”.
Ma Let’s see, in summary, the main evidence present in the Thirteenth Report.
Demographic trends
Tuscany, like the rest of the country, is facing a “demographic winter”, with an increasing average age and an old age index that marks +22.3% compared to 2020. The population over 65 is growing, while those of working age (15-64 years) are constantly decreasing.
In the medium term, a gradual increase in single-person households and childless couples is estimated, and a strong reduction in families with children. All these elements will inevitably also have an impact on ways of living.
Access to the home
The difficulties in accessing a home increase year after year, as shown by the continuous growth of the Affordability index, which measures the degree of access to purchasing a home by Italian families. The index is constructed by relating the purchase price of a home per square meter to the average employment income.
According to this index, an average of 7 years of income is currently needed to purchase a house in Tuscany, but these years rise to 23 if one considers allocating 30% of the income for this purpose, i.e. the portion that is considered economically sustainable also for the concession of mortgages. This gap has widened considerably, going from 18 years in 1986 to 27 today.
Currently 4.1% of Tuscan families find themselves in a situation in which overall housing costs exceed 40% of the net disposable income, net of any housing subsidies.
Real estate market
After two years of growth, in 2023 there was a significant decrease in real estate transactions: -13.9% compared to the previous year.
Mortgage purchases also drop drastically, when compared with those of 2022:
– 30.9%. A figure that can be traced back to the increase in interest rates, which have made taking out mortgages less convenient.
As regards the rental market, for 2023 it shows signs of stagnation, with a marginal increase in registered contracts (+0.3%). However, rentals relating to properties intended for residential use are decreasing, while commercial ones are increasing.
Rent support measures
The Social Rental Fund was not financed at a national level in 2023, thus suffering a significant reduction in resources, based exclusively on the regional contribution and that from the Municipalities. The actual allocation for 2023 amounted to just over 12 million euros (it had been almost 28 million the previous year). The total applications received by the Tuscan Municipalities are 17,699, of which 13,529 in band A (i.e. with disadvantaged socio-economic conditions) and 4,170 in band B (i.e. households with incomes such that they cannot fully cover housing costs, defined as “grey band” ).
Evictions
The trend of eviction requests is once again increasing significantly after the blockade during the Covid years: in 2023 there were 8,604 enforcement requests. For the same year, the evictions actually issued were around 2,500 throughout the regional territory, with an increase of 163% compared to the previous year.
Non-guilty arrears fund
Like the rent fund, the support fund for innocent arrears, which supports citizens who can demonstrate a reduction in their income dictated by causes of force majeure, such as loss of job, redundancy fund, is not was refinanced in 2022 and 2023.
Interview with Dr. Marco Rossi, Urban Policy Analyst on the Housing Crisis in Tuscany
Editor: Thank you for joining us, Dr. Rossi. The latest report on Tuscany’s housing situation paints a rather grim picture. With real estate transactions down by almost 14%, what do you think is driving this decline?
Dr. Rossi: Thank you for having me! It’s quite alarming, really. The primary culprit seems to be rising mortgage rates coupled with stagnant incomes. The average future homeowner is finding it increasingly hard to gather enough financial resources. When purchasing a home requires 7 years of income, or dramatically more under the typical lending ratios, it becomes a daunting task for many.
Editor: And speaking of daunting tasks, the rental market is showing only a slight increase of 0.3%. What does this suggest about the current demand for rental properties?
Dr. Rossi: It suggests that demand is stagnant, largely due to the rising costs of living. People are either unable or unwilling to pay more for rent, and many are opting to stay put, fearing they might not find something better—or more affordable. It’s a classic case of “if it’s not broken, don’t fix it,” but with many landlords still holding on to their rental prices in hopes of profits.
Editor: You mentioned earlier the impact of budget cuts on public housing initiatives. How significant are these cuts in the context of the ongoing housing crisis?
Dr. Rossi: They’re incredibly significant. The reduction in the Social Rental Fund is like a lifeline being pulled away from those who need it most. The irony is stark—people are being told they have to fend for themselves while facing mounting evictions, up a staggering 163% this year alone. This screams of a systemic failure to address an urgent need.
Editor: Speaking of evictions, that figures certainly adds a layer of complexity to this housing crisis. What do you believe needs to be prioritized by local and national governments to remedy this situation?
Dr. Rossi: First and foremost, there needs to be an emphasis on sustainable housing policies that ensure affordability and accessibility for all demographics. Local governments must advocate fiercely for national support to fund public housing and rental assistance programs effectively. We can’t allow the narrative to continue that housing is merely a commodity; it’s a social good.
Editor: what would you say is the overarching sentiment amongst residents facing these housing challenges in Tuscany?
Dr. Rossi: The sentiment is undoubtedly one of frustration and fear. They feel trapped in a comedic yet tragic chaos—the stunning landscapes of Tuscany are falling victim to its housing crisis, and many feel they are left with little hope of securing a safe, stable home. To put it plainly, navigating the housing market today feels like being in an episode of a tragicomedy where no one quite knows how it will end.
Editor: Thank you, Dr. Rossi, for your insights. It seems there’s much work ahead for Tuscany’s policymakers in this ongoing housing saga.
Strong> And how about the commercial rental market? It seems to be faring better than residential properties. What’s going on there?
Dr. Rossi: That’s an interesting dynamic. With tourism in Tuscany still vibrant, demand for commercial spaces has remained steady, especially with businesses looking to capitalize on tourist spending. While people might be struggling to find homes, tourists continue to flock to the region, driving demand for shops and services. It’s a classic case of a tale of two cities, where one sector thrives while another deteriorates.
Editor: Lastly, President Eugenio Giani has emphasized the social value of homes. In light of these statistics and hardships, do you think there’s a genuine effort being made to support vulnerable populations?
Dr. Rossi: There appears to be a disconnect between the rhetoric and reality. While there are plans in place, the lack of national funding and severe budget cuts have hindered progress. It’s a sobering situation where words of social value clash with the financial realities of those desperately needing assistance. We must see more than just plans; we need action and substantial investment to make a real difference.
Editor: Thank you, Dr. Rossi. Your insights shed light on the complexities surrounding Tuscany’s housing crisis, and we appreciate your time and expertise on this pressing issue.
Dr. Rossi: Thank you for having me! It’s crucial to keep these conversations alive as we seek solutions for all those affected.
