Last week, we convened a public-private roundtable in Florence with Aparto, bringing together 20 key stakeholders from the public and private spheres to assess the Italian current state of the student housing sector and its future. Below are some of the key takeaways taken from the session:

Student Mobility and the European Agenda

Italy’s student housing shortage has become a talent and competitiveness issue as an estimated 35% of Erasmus students are now unable to study abroad due to a lack of accommodation. As such, Italy risks losing its attractiveness as an Erasmus destination as early as 2026 if this shortage continues.

The EU has recognised how housing constraints are impacting Europe’s talent mobility, and the discussion addressed how the Affordable Housing Plan aims to build 2 million homes annually and has already mobilised over €43 billion for 2021-2027.  

However, public actors alone cannot meet demand. The clear message from the roundtable is that student housing must be treated as critical infrastructure to support Italy’s education and talent ecosystem.

Market Overview: Growth, Gaps and Affordability

The Italian PBSA sector has grown at approximately 5% annually, driven largely by rising international student numbers. The strongest demand is concentrated in major university cities such as Rome, Milan and Turin, where both domestic and international investors see opportunity.  

Despite this growth, supply is not expected to meet demand, leaving significant room for expansion. However, a large share of students cannot afford current rent levels, creating a structural affordability challenge.

Balancing student affordability with sufficient returns to attract investor interest is now one of the core challenges. Adding to the complexity, each city operates within its own regulatory and market conditions, meaning localised approaches are required rather than a single national solution.

Policy and Fiscal Realities

Policy progress in Italy remains slow. Reforms proposed by Assoimmobiliare are unlikely to pass before Q3 2027 due to recent government changes, creating investor uncertainty. On a positive note, proposed amendments suggest that projects classified as urban regeneration may bypass certain planning restrictions, potentially accelerating delivery.

However, PNRR funding is available only until May 2027, a very tight timeline for large-scale developments and public-private partnerships are currently not operating effectively due to the current misalignment between stakeholders.

A key question raised was whether Italy should learn from more mature markets, such as the UK and the Netherlands, where national coordination and accreditation has enabled more effective delivery.

The need for sector collaboration:

The Italian student housing sector lacks strong national coordination and representation, limiting its ability to influence policy and scale delivery. Participants of the roundtable discussion noted a clear gap: there is no formal sector body with structured working groups covering investment, operations, and development.  

To address this, establishing a formal organisation, similar to the UK’s ANUK model was one of the recommendations. Breaking the association into smaller, focused working groups would allow for more targeted outcomes. In addition, it was suggested that the private sector should adapt to evolving regulations rather than resist them.  

Looking ahead, The Class Foundation supports the creation of a structured roadmap, helping to define priorities, facilitate collaboration, and ensure progress.

The direction is clear: long-term success will depend on balancing policy objectives with market viability, and on moving from discussion to structured, collaborative action.

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