Venice failed to modernize its naval force and continued to live in an earlier technological era. The second factor in Venice's decline, according to Grygiel, was the republic's decision in the 15th century to become much more involved in the politics of Italy, and to acquire territorial control of neighboring regions.

Venice is facing a dual crisis of environmental degradation and demographic decline in 2026. Environmentally, the city is battling rising sea levels and increasingly frequent "Acqua Alta" (high tide) flooding events. While the MOSE flood barriers have been successful in mitigating the worst floods, they have introduced new concerns regarding the lagoon's ecosystem health. Socially, the city is suffering from extreme overtourism, which has driven up the cost of living and transformed residential housing into short-term rentals like Airbnbs. This has forced thousands of locals to move to the mainland, leaving the historic center with fewer than 50,000 permanent residents—a historic low. The result is a "tourist monoculture" where shops and services cater almost exclusively to day-trippers rather than a living community. Without a sustainable balance between protecting the heritage of the "Floating City" and maintaining a viable environment for its citizens, Venice risks becoming a beautiful but hollow museum rather than a functioning urban center.