Despite Rising Rental Prices: Austrians' Housing Satisfaction Remains High

Austrians are very happy with their living situation. The housing satisfaction is 8.1 on a scale from 0 to 10, "despite many construction sites in this area," explained Regina Fuchs from the Population Directorate of Statistics Austria on Friday at a media event in Vienna. However, the "many construction sites" did not refer to the recently collapsed number of building permits, which reached a record low in 2024, but rather to the increase in rental prices.

Renting has become more expensive than inflation for many years, Fuchs explained. In 2010, only 6 euros per square meter including operating costs were due on average, but last year it was 9.80 euros. In 2024 alone, rents increased by 4.8 percent, while the consumer price index only rose by 2.9 percent.

Social Housing Reduces Rental Costs

Rental costs are reduced by social housing. In a municipal apartment, an average of 8 euros per square meter including operating costs is due, in a cooperative apartment 8.50 euros, but in another main rent 11.60 euros. New rentals are significantly above the average rents. Tenants pay the most in Salzburg (11.90 euros). Tyrol and Vorarlberg follow closely behind (11.50 and 11.30 euros, respectively). The cheapest rents are in Carinthia (7.70 euros) and Burgenland (7.40 euros).

Young singles and people from abroad pay more than the overall average. Single-person households under 30 years old pay 11.30 per square meter (single-family households: 9.70 euros), but single-person households over 60 years old only 8.50 euros. Households with only Austrian citizens cost 9.10 euros, but households with people without an Austrian passport 11.10 euros.

48 Percent of Main Residence Apartments Owned

In Austria, there are 4.16 million main residence apartments, of which 48 percent are owned. On average, 2.17 people live in a 102 square meter apartment with 3.9 living rooms. The rental rate is the second highest in Europe at 46 percent, behind Germany at 53 percent. The EU average is 32 percent.

The relatively high rental rate here is influenced by Vienna, where it stands at 78 percent. At the other end of the scale are Burgenland (22 percent) and Lower Austria (28 percent). In the other states, the rate is between 34 and 40 percent, according to the "Housing 2024" survey by the statistics authority.

The housing situation also differs significantly on average when divided into ownership and rental. An average owner-occupied apartment has 132 square meters and 4.7 rooms with central heating. In a rental apartment, it is just under 69 square meters, 2.9 living rooms, and district heating.

Depending on the type of rental, the terms and contract duration differ significantly. In a municipal apartment, the average contract duration is 13.2 years, in a cooperative apartment it is 8.3 years, and in a private main rental it is 2.4 years. This has much to do with the fact that nearly half of private main rentals are temporary, while this is very rare in municipal and cooperative apartments. In Austria, 39 percent of rental apartments are cooperative apartments, 16 percent are municipal apartments, and 45 percent are other main rental forms such as private rentals.

Building Permits Plummet to Record Low

Building permits reached a record low in 2024. Compared to the peak of 71,805 permits (buildings with one or two apartments and buildings with three or more apartments) in 2017, the 31,867 permits in 2024 represent more than a halving. Even in 2023, there were not many more permits than in the previous year.

In real estate purchases, existing properties have become cheaper with the interest rate change. Only in the last quarter of 2024 did a slight upward trend reappear. New apartments and houses only briefly decreased in price - namely in 2023 by 0.3 percent - and became 2.7 percent more expensive again in the previous year. According to the statistics authority, purchases themselves are also rising again - since the second quarter of 2024. Previously, there had been declines since the third quarter of 2021, leading to significant slumps in 2022 and 2023.

In terms of price, there are immense regional differences similar to rents. It can be observed that apartments and houses cost more in the west and in urban centers.

(APA/Red)

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