Housing problems are rising. In Austria, too. I have put together a factsheet on the issue together with my colleagues Selim Banabak and Leonhard Plank (both TU Wien). Essential take-aways:
- The housing cost burden in Austria is still moderate by international comparison. Satisfaction with the current housing situation among households is overall relatively high.
- Incomes have not kept pace with rapid house and rent price increases particularly since the onset of the global financial crisis in 2008
- Housing is increasingly treated as a financial asset, which contributes to rising prices and rents
- The deregulation of the private rental market and the declining relevance of housing subsidies further promote affordability problems
The paper presents the most recent evidence on these issues and provides a reference list for further reading. It is published as part of the BEIGEWUM Factsheet series (in German). BEIGEWUM (German acronym for “Association for Alternative Social, Economic and Environmental Policies”) is an Austrian platform for social science research that aims to foster academic involvement in public debates. The factsheet series presents evidence on currently pressing issues. Factsheets cover, inter alia, the relevance of taxes for the welfare state, the distribution of incomes and wealth in Austria, the problems with the German social benefit model “Hartz IV”, or the potential benefits of shortening working time.