Fight for living space: Kim-vo-end brings hope for young families!

Fight for living space: Kim-vo-end brings hope for young families!

Finally moves to the stagnant housing market in Vorarlberg! The strict rules of the credit institutions-real estate financing measures regulation (KIM-VO), which have been inhibiting the acquisition of residential property for years, are to be abolished in June 2025. Economic representatives like Karlheinz Kopf from the Austria Chamber of Commerce celebrate this as a turning point. The regulation had built up such a hurdle for the housing market that the new building was literally on the abyss. According to the head, there have been hardly any new directions in recent years, which massively impaired the creation of property, as ORF reported.

The KIM-VO, originally introduced to protect households from a possible insolvency and keep real estate prices stable, had placed strict requirements for borrowers. This included at least 20 percent of their own funds and a limitation of the monthly rate to 40 percent of the net income. Despite these strict requirements, the current Financial Stability Report of the Austrian National Bank shows that the risks in the real estate sector have been significantly minimized and there is currently no systemic risk for the financial market stability, such as meinbezirk.at .

economy optimistic, but also worried

While the KIM-VO's run is considered positive, experts also express concerned voices. There are concerns that the disappearance of the regulations could lead to a return of explosive lending standards. The financial market stability body has pointed out that significant risks for the financial system remain. In particular, decoupling real estate prices could bring significant problems from income, so that the supervision continues to be obliged to observe the developments closely.

Overall, both the economy and the politics expect that the abolition of the KIM-VO leads to the revival of the housing market, especially for young families who are looking for property. The hope of more freedom for banks in lending could fundamentally improve the situation and put the dream of your own home again, which the affected people are eagerly awaiting.