PNRR student accommodation: the total cost is lower than rents on the open market

In Italia today, living in a subsidised student hall of residence costs around 20 per cent less than traditional rent. The beds created using funds from the National Recovery and Resilience Plan actually have a lower real cost than those on the open market. This is shown by the initial findings from the Scenari Immobiliari Student Housing Observatory, which examined a representative sample of over 200 properties and around 10,000 beds created under Ministerial Decree 481/2024. The crux of the study concerns the method used to compare prices. Putting the rate for a PNRR student accommodation on the same footing as the basic rent for a room in a shared flat effectively means, comparing two different types of property. In student accommodation funded by the Ministry of Universities, the fee normally includes utilities, internet connection, reception, maintenance, cleaning of communal areas, management of shared spaces, and services relating to study and security. In the private market, however, many of these items are paid for separately. If we compare costs, the national average rent for a single room in a student hall of residence funded by the PNRR is 595 euros per month, with all services included. Taking into account the component allocated to the right to university education (DSU) – which accounts for around 30 per cent of beds and has an average rate of €250 per month – the weighted average price falls to €490 per month. The comparison with the private market varies significantly depending on the property in question. A single room on the private market has a national average rent of around 355 euros per month, but this is solely the cost of rent in a second-hand property, excluding utilities and ancillary services. The cost rises when looking at new-build properties: here, the average rent reaches €475, 34 per cent higher. In both cases, service charges, utility bills and other costs associated with the day-to-day running of the accommodation must be added to this figure, which Scenari Immobiliari estimates to total more than 30 per cent. When these expenses are added together, the actual cost rises to €720 per month – more than 20 per cent higher than the weighted average rent for PNRR student accommodation. 'Any comparison between student accommodation built under the NRRP and that on the free market must take into account the actual breakdown of costs borne by students and their families,' explains Francesca Zirnstein, Director-General of Scenari Immobiliari. 'Limiting the analysis to the nominal rent for a room risks providing an incomplete picture of the financial benefits. When the various components of expenditure are analysed in isolation, it becomes clear that the new student housing provision not only guarantees higher quality standards and an integrated system of services, but in many cases also represents a cost-effective solution.' The analysis highlights another significant factor: in PNRR student accommodation, the pure housing component accounts on average for only 40–50 per cent of the total fee, compared with 65–70 per cent in the private sector. In absolute terms, the cost of the accommodation component alone ranges from 240 to 300 euros per month for the full PNRR fee and from 195 to 245 euros when the fee is weighted by the DSU contribution. On the open market, by contrast, the housing component averages 430–500 euros per month. The difference is therefore substantial. Private rents are, on average, 48 per cent higher than the property component of the full PNRR tariff and 82 per cent higher than the component weighted with the DSU share. This gap widens in markets characterised by greater housing pressure: in the North-East, rent on the open market exceeds the property component of the PNRR tariff by 74 per cent and the DSU-weighted tariff by 110 per cent; in the North-West, the differentials stand at 65 per cent and 102 per cent respectively, whilst in Central Italia they stand at 65 per cent and 97 per cent. A significant proportion of the fees charged by PNRR-funded halls of residence covers services that, in the traditional market, are often not included in the rent; these account for 50–60 per cent of the fees in PNRR-funded halls of residence, compared with 30–35 per cent in the private sector. In addition to reception areas, study rooms, launderettes and communal spaces, several halls of residence also provide services designed to foster social interaction, integration and the wellbeing of students. The most significant figure, however, emerges when looking at the overall breakdown of monthly expenditure. In PNRR student halls of residence, rent alone accounts for around 38 per cent of a student's monthly budget, whilst on the open market this figure rises to 64 per cent. This difference has a direct impact on the disposable income available to families and students for all other expenses related to university life. The affordability of the new accommodation built under the NRRP fits into a market characterised by a severe structural shortage of beds, particularly in the main university hubs. The sample analysed by Scenari Immobiliari confirms that demand is concentrated in the country's most attractive areas: around 60 per cent of the beds under consideration are located in the North-West and North-East. This distribution also reflects the rules of the NRRP. Mission 4 (Component 1), on which Decree 481/2024 is based, stipulates that at least 40 per cent of new beds must be allocated to Southern Italy. The achievement – and exceeding – of the PNRR targets – which has created a total of 63,200 new beds, of which around 33,000 have already been built – is now driving student housing to take on a role that goes beyond simply providing accommodation. The increase in organised supply can help ease the pressure on the rental market in university towns, reducing competition between students and local residents whilst at the same time enhancing the appeal of the universities. La newsletter premium dedicata al mondo del mercato immobiliare con inchieste esclusive, notizie, analisi ed approfondimenti Abbonati