Satisfaction Prevails Among Austrians Regarding Housing Conditions, Majority Reports Positive Living Arrangements
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Austrians' housing satisfaction remains high at 8.1 out of 10, despite steep rental hikes and soaring property prices. But why, you ask? Regina Fuchs, from the Population Directorate of Statistics Austria, spilled the beans at a Vienna press conference: it ain't the scarcity of building permits, but the skyrocketing rent that's got folks talking.
Boom in Rent, Bust in Wallets
For the past decade, rent has been burning a hole in pockets, with costs outpacing inflation. Austrians were coughing up an average of 6 euros per square meter back in 2010, but in 2023 they're now coughing up 9.80 – a whopping 60% increase! And to add salt to the wound, rents jumped another 4.8% in 2024, while inflation only ticked up by a mere 2.9%. Yikes!
Let's break it down by region:
- Municipal apartments: 8 euros per square meter
- Cooperative apartments: 8.50 euros per square meter
- Private rentals: 11.60 euros per square meter
Renting in Salzburg costs a pretty penny (literally 11.90 euros), while the thriftiest region to rent in is Carinthia (7.70 euros) or Burgenland (7.40 euros). Shockingly, it's young folk and foreigners who end up paying more than the average. Single households under 30 pay a whopping 11.30 euros, while 60-plus households pay just 8.50 – go figure!
Apartment Hunting: Austrian Style
ust 48% of Austrians own their homes, while the rest are renting. On average, they live in a 102 square meter abode with 3.9 living rooms. Vienna's rental section boasts a staggering 78% occupancy, pushing Austria's rental share to the second-highest in Europe (46%). The cheapest digs are found in Burgenland (22%) and Lower Austria (28%).
The Guessing Game: Rent or Buy?
They say buying is cheaper in the long run, but renting might be the way to go if you're young or foreign. A 100 square meter apartment will set you back 15 years' salary – yikes! And with building permits at an all-time low, it ain't looking good for finding a bargain anytime soon.
Average ownership apartments in Austria measure 132 square meters with 4.7 rooms and central heating. Rental apartments are smaller (69 square meters) with 2.9 rooms and district heating. The length of rental contracts varies widely, from as short as 2.4 years for private rentals, to 13.4 years for cooperatives, and 13.2 years for municipal apartments.
Wanna get technical? In 2024, a mere 31,867 building permits were issued, a far cry from the 71,805 permits issued in 2017.
Sources:
[1] Statistik Austria: Inflation Rate - Historical Data[2] Statistik Austria: Housing Market - Key Statistics[3] Numbeo: Cost of Rent in Austria vs. United States
The steep rental hikes and soaring real-estate prices in Austria have led to a significant increase in the cost of living, with rent outpacing inflation for the past decade. This trend has made investing in real-estate a challenging prospect, especially for younger and foreign individuals.
Despite the high rental costs, the majority of Austrians continue to rent rather than own, with rental shares reaching the second-highest in Europe. The probability of finding a bargain in the housing market is currently low, due to the limited number of building permits issued.