Almost half of Austrians perceive housing as no longer affordableChristian Fernsby ▼ | October 18, 2019
A rapidly growing population and a shortfall in affordable housing space are leading to rapidly rising real estate prices in Austria.
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According to a recent survey by INTEGRAL on behalf of Erste Bank und Sparkassen, living is leading to an ever greater financial burden on the household budget.
Almost half of Austrians consider housing no longer affordable.
The prognosis for the future is bleak, as three quarters of Austrians assume that living in 2030 will hardly be affordable.
Nine out of ten Austrians say, according to the Integral survey, that rental and housing prices have risen faster than incomes.
Statistics show that this is not only a feeling.
According to official sources, since 2008, house prices have risen almost three times and rental rates on new leases have risen almost twice as fast as Austrian household income.
“These developments are problematic.
Housing costs should amount to a maximum of 30 percent of income, but today the factor of living already devours much more for many Austrians,” says Peter Bosek, CEO of Erste Bank.
An additional problem is that there is an increasing number of fixed-term leases on the market.
Between 2008 and 2018, the share of fixed-term leases in the private sector
ncreased from 30.2 percent to 45.8 percent. The reason: landlords do not want to be tied up long-term to be able to make even better use of future price increases.
87 percent of the surveyed Austrians consider non-profit residential building projects important.
According to Statistics Austria, six out of ten tenants live in a cooperative or municipal flat. ■