Protestors have marched through Milan to air their grievances, holding signs with various slogans, including "Eat the rich, not the city". Both protest organizers and locals have spoken with the media covering the Games, voicing concerns about being pushed out of their city.
Data from the Affordable Housing Observatory reveals that rent in Milan increased by 45 percent between 2015 and 2023, while salaries rose only 10 percent.
This trend has been particularly pronounced in Milan neighbourhoods hosting Olympic venues, such as Scalo di Porta Romana, where prices have climbed from €3,296 per square metre in 2019 to €4,845 in 2024, a 48 percent increase, according to property company Casavo.
READ ALSO: How the 'Olympic effect' is driving up property prices in Milan
Skyrocketing housing costs are part of a broader impact seen as increasing numbers of wealthy foreigners relocate to Italy for favourable tax laws, for whom Milan has become a popular destination.
This is seen in the near-decade since Italy implemented the controversial ‘CR7’ flat tax, a policy allowing high-net-worth individuals moving to the country to pay a relatively low lump-sum tax on any income generated abroad.
The influx of wealthy residents to the city has had visible markers, from Ferraris parked on the streets to a new slate of expensive shops and restaurants, like Nusr-Et Milan, where influencer "Salt Bae" sells €285 steaks.
READ ALSO: 'Disneyland for tourists': Milanese fear being priced out by Olympic effect
Luxury autos and fine dining aside, the reality is the average Italian resident's cost of living is going up across the country, not just in Milan.
Recent data shows that grocery prices in Italy have risen by 25 percent since 2021 – far outpacing inflation. This has prompted an investigation by the national antitrust authority.
Still, Milan is the most expensive city to live in in Italy. On a Cost of Living index put together by the global money transfer company Wise, Milan is situated at 66.8 on a scale of 100 – more than 11 points higher than Rome.
Even though a supermarket pricing crisis is a nationwide phenomenon, a dozen eggs costs a bit more in Milan – €4.02, in comparison to €3.81 in Rome. A 1-bedroom apartment rental in Milan’s city centre costs an average of €1,336.88 per month, whereas in Rome the same would go for just under €1,100. Dining out at a trattoria will run you about €15 in Rome, whereas in Milan you can expect to pay €20.
Milan might be expensive by Italian standards, but it’s mid-table by European ones.
It’s cheaper than Paris – which sits about seven pegs higher on the Cost of Living Index – but comparable to cities like Hamburg Germany and Maastricht in the Netherlands.
Other southern European cities like Barcelona and Lisbon are similar to Milan when it comes to many aspects of life, from housing to transportation. A public transport ticket will cost about the same in Milan as it does in Lisbon (€2 and €2.20 respectively). You can rent a 1-bedroom apartment for a bit less in Barcelona – an average of €1,240.82 – but you’d pay about €100 more per month in Lisbon.
While the wage squeeze residents complain of is real and ongoing, it isn't unique to Milan and, as the data shows, predates the Olympics. The well-documented ‘Olympic effect’ seen in other host cities and countries likely accelerated an existing economic trend.
The full picture of the Olympics’ impact on Milan remains to be seen.
“The real issue with these Games is their legacy", which will be assessed only in the coming years, said Valeria Negri, author of a report by business lobby group Assolombarda measuring the economic impact of the Milan-Cortina Olympic Games.
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