Mortgage, Rent and Bonuses: How Italy's New Housing Plan Revives Social Housing from INA-Casa to Today

Italy's housing emergency has never been more acute. With property prices in constant growth, rental rates hitting historic records in major cities, and a stock of public residential buildings (ERP) aging without adequate renovation efforts, millions of Italian families today find themselves in a condition of concrete housing fragility. The government is responding with an ambitious plan to revive social housing that looks to the past to build the future: the New Housing Plan 2025-2030, announced by the Ministry of Infrastructure and Transport, explicitly draws inspiration from the INA-Casa experience, the program that between 1949 and 1963 built over 350,000 homes for Italian workers, reshaping the country's urban landscape.

The question that millions of Italians are asking themselves today is simple and urgent: will this new plan really change something for those seeking an affordable mortgage, accessible rent, or a contribution to renovate their home? The answer, articulated and complex, deserves an in-depth analysis that compares the golden age of Italian public housing with the challenges and opportunities of 2026.

From INA-Casa to the New Plan: Seventy Years of Italian Housing Policy

The INA-Casa plan, championed by Labor Minister Amintore Fanfani with law no. 43 of February 28, 1949, was one of the largest housing welfare programs ever implemented in Western Europe. Financed through mandatory contributions from workers and employers, it produced over fourteen years an immense heritage: entire neighborhoods designed not just as housing containers, but as communities equipped with schools, churches, green spaces and services. Architects like Ridolfi, Quaroni and young Carlo Aymonino left works of great urban and social value.

After the closure of the Fanfani plan, the torch passed to GESCAL (1963-1973) and then to the system of public housing managed by IACP (Autonomous Institutes for Public Housing), today transformed into ALER in Lombardy and ATC elsewhere. But progressive deterioration, lack of funds for renovation, public asset sales policies of the 1990s, and chronic shortage of new investments have produced a system on the brink of collapse.

Today Italy's ERP heritage comprises approximately 800,000 homes, with an estimated 20% to 30% requiring urgent intervention. Waiting lists for public housing in some regions exceed 100,000 families. In this context, the reference to INA-Casa in the New Housing Plan is not mere nostalgic rhetoric: it is recognition that a systemic vision is needed, not spot interventions.

The Four Pillars of the New Housing Plan: Mortgage, Rent, Renovation and Bonuses

The New Housing Plan 2025-2030 is structured around four main axes, each aimed at a specific target of families and with distinct financial and regulatory tools.

1. Subsidized Mortgage for First-Time Home Buyers

The mortgage chapter is the one that concerns the lower-middle income bracket that wants to buy but cannot access ordinary credit. The plan provides:

• 90% state guarantee fund on the mortgage value for under 36 with ISEE up to 40,000 euros (extended and strengthened compared to the previous version)
• Regulated rate thanks to agreements with Cassa Depositi e Prestiti and participating credit institutions: maximum 1.2% spread on Euribor
• Extension of duration up to 40 years to reduce monthly installments
• Priority for large families, disabled persons, young couples and temporary workers

The critical point, raised also by consumer associations, is that a subsidized mortgage does not solve the problem if property prices continue to rise. In Milan, Rome and Bologna the average price per square meter exceeded 4,800, 3,900 and 3,200 euros respectively in the first quarter of 2026. Therefore, the mortgage measure must be combined with an increase in the supply of homes at regulated prices.

2. Rent at Moderate Rates: The Vienna Model, Italian Style

The second pillar concerns rent. The stated objective is to reach 200,000 new rental homes with moderate rents by 2030, aimed at families with annual income between 20,000 and 45,000 euros: the so-called "gray area," too wealthy for public housing, too poor for the free market.

The main tool is the strengthened rental contract at agreed rate, with tax incentives for private owners who participate (flat tax of 10% instead of 21%) and public funds to build or purchase properties for social rental through cooperatives and Third Sector operators.

Particularly interesting is the mechanism of real estate Social Impact Bonds (SIB): private investors finance the construction or renovation of properties, receive a modest but guaranteed return (3-4%) from the State, and homes are rented at controlled prices for at least twenty years. It is a model similar to that adopted by Vienna and Amsterdam with excellent results.

3. Renovation of Existing Housing Stock

Renovation is perhaps the most urgent axis. With a building stock in which almost 60% of buildings were constructed before 1980, often without energy efficiency criteria and with materials now considered inadequate, Italy faces an enormous challenge.

The plan allocates 5 billion euros over six years for upgrading the ERP heritage, with priority given to buildings in energy classes F and G. The planned interventions include:

• Thermal insulation (external cladding)
• Replacement of heating systems with heat pumps and hybrid systems
• Installation of photovoltaic panels on roofs
• Seismic upgrading in risk areas
• Removal of architectural barriers

For private owners, renovation remains incentivized through a redesigned system of tax bonuses after the end of the 110% Superbonus, with more sustainable but permanent rates.

4. The Reformed Tax Bonus System

The subject of bonuses is among the most debated. After the distortions and uncontrolled costs of the 110% Superbonus (over 120 billion euros in state burden according to the General Accounting Office), the government has opted for a more selective but stable system.

The main bonuses active in 2026 for those working on their home are:

• Ecobonus 65%: for energy efficiency interventions (windows, boilers, insulation)
• Renovation Bonus 50%: for extraordinary maintenance work, confirmed until 2028
• Seismic Bonus 70-85%: for seismic upgrading, with higher rates in zones 1 and 2
• Furniture Bonus 50%: purchase of furnishings and large appliances linked to renovation
• Green Bonus 36%: for gardens, terraces and green areas

The novelty of the New Housing Plan is the introduction of a Social Housing Bonus, a 75% deduction reserved for interventions on properties intended for rental at agreed rates for at least 8 years. This should encourage small owners to put vacant properties on the market at accessible rates.

Challenges and Criticalities: What Could Go Wrong

The comparison with the INA-Casa experience also teaches something important about criticalities to avoid. The Fanfani plan worked because it had efficient centralized governance, a stable and predictable financing flow, and above all it fit into a context of strong demand for labor in the construction sector.

Today the risks are different:

1. Bureaucracy and long timeframes: Italian municipalities take on average 18-24 months to issue complex building permits
2. Shortage of skilled labor: the construction sector complains of a structural lack of qualified workers
3. Coordination between entities: the division of responsibilities between State, Regions and Municipalities often creates bottlenecks
4. Risk of gentrification: without adequate safeguards, revitalized neighborhoods tend to attract investors and raise prices, displacing original residents
5. Long-term sustainability of the bonus system: it is necessary to avoid a new "Superbonus effect" with uncontrolled costs

Frequently Asked Questions

Q: Can I access the subsidized mortgage from the New Housing Plan if I am self-employed? A: Yes, but with some additional conditions. Self-employed workers must demonstrate stable income through the last two tax returns and can access the state guarantee fund if their ISEE does not exceed 40,000 euros. However, some partnering banks also require supplementary income insurance as additional guarantee.

Q: What are the requirements to access an apartment for rent at moderate rates provided by the plan? A: Requirements vary by municipality, but generally you must have an ISEE between 15,000 and 45,000 euros, not own other properties in the national territory, be resident in the municipality of application for at least two years, and not have terminated rental contracts in the previous 12 months.

Q: Does the 50% Renovation Bonus apply to rental properties? A: Yes, the 50% Renovation Bonus can be used by the owner even on rented properties, provided that the interventions are extraordinary and not ordinary maintenance. The new 75% Social Housing Bonus is instead specifically reserved for properties that will be rented at agreed rates for at least 8 years.

Q: What happens to bonuses if I sell the renovated property before I have exhausted the deductions? A: Deductions not yet used are automatically transferred to the property buyer, unless otherwise agreed in writing between the parties at the time of deed. It is an important point to clarify with the notary before proceeding with the sale to avoid future disputes.

Q: Does the New Housing Plan provide specific measures for young people under 30? A: Yes, the under 30 bracket is among the stated priorities of the plan. Beyond the subsidized mortgage with state guarantee, separate waiting lists are provided for social rent with additional points for those with atypical work contracts, and a specific fund of 500 million euros for the realization of student residences and co-living in university cities.

Conclusion

Reviving social housing in Italy is a necessity, not an option. The reference to INA-Casa is not nostalgia, but recognition that when the State decides to intervene with adequate resources and a long-term vision, results come. The New Housing Plan 2025-2030 has the right ingredients — subsidized mortgage, regulated rent, renovation of the heritage and a more stable and selective bonus system — but the real challenge will be in implementation.

For Italian families, the practical advice is to actively monitor your Municipality's and regional ALER/ATC platforms for new social rental waiting lists, verify your eligibility for the state guarantee fund for mortgage before contacting your bank, and do not delay energy renovation interventions by taking advantage of bonuses still available. The window of opportunity is open: knowing how to seize it makes all the difference.