Are the in-work poor more disadvantaged in urban areas? An analysis of housing affordability in Italy

In Europe, there is growing empirical evidence on the difficulties workers face in making ends meet. High housing costs may compound the picture. This study investigates the housing affordability problems of workers’ households. Drawing on 2019 EU-SILC cross-sectional data for Italy, it examines the extent to which working households’ income results in housing affordability problems, and the differences between cities and rural areas. It considers three groups: in-work poor, low-middle, and high-income households. Results confirm the relevance of the income level as in-work poor households face the lowest housing costs but the highest housing affordability problems. In terms of territorial differences, results show a widespread vulnerability of the in-work poor, especially for tenants: these households have considerable difficulties in coping with housing costs in both urban and rural areas, despite rents being higher in cities. In contrast, the place of living assumes more relevance for low-middle-income households: for them, renting in cities rather than in rural areas is substantially riskier.