Housing Construction in Austria Continues to Decline

For comparison: three years ago, there were around 46,000, and since then the number has been decreasing significantly. However, according to the chairman of the association, Gerald Gollenz, we are now approaching a point where it will begin to stagnate, albeit at a very low level.

The figures are from the "1st Austrian New Construction Report" for 2025. The report was created by the company Exploreal on behalf of the real estate association and was presented at a press conference on Wednesday. Compared to 2024, there is a significant decline, especially in privately financed rental apartments. After around 7,600 published completions in this area last year, only about 4,700 are expected this year.

Living: Outdoor Spaces Very Popular

Of the approximately 102,000 completed housing units from 2023 to 2025, 96 percent have an outdoor space according to the report. This includes a garden, terrace, balcony, or loggia. This outdoor space is on average 11 square meters in size. "An apartment without an outdoor space is actually not marketable," said Johannes Wild, deputy chairman of the real estate industry representatives of Lower Austria.

From 2023 to 2025, the completion rate nationwide was 3.6 housing units per 1,000 inhabitants annually. The clear outlier was the federal capital with a rate of almost 6.1. Carinthia was at the bottom with a value of around 2.3 housing units per 1,000 inhabitants.

New Housing Construction in Austria Continues to Decline: Reasons

The reason for the poor development was a "cocktail," meaning a mix of factors including the KIM regulation and interest rate developments, said Herwig Pernsteiner, deputy chairman of the Association of Non-Profit Building Associations (GBV). Improvements are now being seen in both factors. The European Central Bank (ECB) has lowered the key interest rate several times, which is positively received in the real estate industry. Regarding the KIM regulation, Gollenz said, "we are all pleased that it expires on June 30. But we know that it will return in some form through the back door."

"We are not begging for money. It's about simplifying administration and changing laws," Wild clarified. In terms of thermal renovation, "we still have to struggle with a condominium law that requires unanimity for heating system changes." Thus, the industry representatives reiterated their demands for debureaucratization.

(APA/Red)

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