Vienna Faces Housing Shortage: Situation for Renters Continues to Escalate
In Vienna, the development of rental prices is alarming, while at the same time building permits are declining. The pressure on tenants is increasing, making the search for adequate housing more difficult.
In the last legislative period, there were still 5,700 new rental apartments. However, in the coming years, 22,000 cooperative apartments are to be built, which gives hope for a relief in the housing market.
Vienna with the highest proportion of tenants nationwide
Vienna remains the federal state with the highest proportion of rental apartments – over three-quarters of the population live here as tenants. Rental prices in Vienna are slightly above the Austrian average, at around ten euros per square meter including operating costs. For many tenants, the situation is extremely tense, as rents in municipal housing have risen from 6.3 euros per square meter to 8.2 euros over the past ten years, as reported by ORF.
Rental prices in Vienna have recently increased significantly
The rents in cooperative apartments have also increased since 2014: from 6.5 euros per square meter to 8.8 euros in just ten years. In all other rental agreements, the increase is even more significant: rents climbed from 8.4 euros per square meter to now 12.2 euros.
Temporary Rental Contracts as Another Problem
Another problem is the high proportion of temporary rental contracts, which has already reached almost 20 percent in Vienna. Most of these contracts are limited to three years, which significantly affects rental prices. Tenants with contracts of less than two years pay an average of 13.2 euros per square meter. For contracts between two and five years, it is 12.3 euros, and for five to ten years, only 10.5 euros. The direct comparison shows: For temporary rents, the average is 14.1 euros per square meter, while permanent rents cost only 9.2 euros – a difference of five euros.
Building Permits at a Low Point
The number of building permits is declining, which will lead to fewer available apartments in the long term. In 2022, 1,521 residential buildings were approved in Vienna, but in 2023 it was only 1,288, and last year even only 1,045. This is the lowest number of approvals in the last ten years.
(Red)
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