Milan is consistently ranked as the most expensive city in Italy, outpacing Rome in nearly every cost-of-living metric. As the country's financial and fashion capital, Milan commands significantly higher housing prices; for instance, renting a one-bedroom apartment in the city center typically ranges from €1,500 to €2,200, whereas a similar property in Rome might fall between €1,200 and €1,600. Beyond rent, day-to-day expenses such as dining out at mid-range restaurants, luxury shopping, and even basic services tend to carry a premium in the north. While Rome is certainly not "cheap" due to its status as a global tourism hub, its vast size offers more neighborhoods where budget-friendly living is possible. Milan’s high cost is driven by its concentrated economic power, a booming international expat community, and a limited supply of modern housing, often requiring residents to spend over 70% of their net salary on rent alone.