Vienna under pressure: Rental prices explode - housing shortages threaten!

Vienna under pressure: Rental prices explode - housing shortages threaten!

Wien, Österreich - In Vienna, the shortage of housing continues to head, which leads to a dramatic increase in rental prices. According to a report by Kosmo , the forecast for 2025 will predict an increase in housing prices by 2.4 percent and rents by 7.3 percent. These developments are due to a decreasing availability of apartments, while demand is continuously increasing.

In Vienna, over 10,000 apartments were completed in Vienna in the first half of 2025. This represents a decline compared to over 12,000 in the previous year and is far below the more than 14,000 completions of the first half of the year 2023. The rental sector is particularly affected, which is under great pressure, as is the reports the press . An increasing shortage of living space could lead to structural undersupply.

Rental price development in Vienna

The average rent, including operating costs, exceeded the mark of 10 euros per square meter for the first time in the first quarter of 2025, which corresponds to an increase of 3.1 percent compared to the previous year. Smaller apartments with an area of around 58 square meters are particularly requested. In the inner districts, the top rent has risen to 18.60 euros per square meter, an increase of three percent.

The construction activity is concentrated in the northern districts such as Floridsdorf and Donaustadt as well as in favorites and Liesing. The decline in building permits since 2021 among the ten -year average is alarming. Factors such as increased increased construction costs and high interest rates for residential finance lead to fewer new construction projects being realized. According to The press could further exacerbate the situation.

regulatory measures and living promotion

The city of Vienna reacts to the crisis with measures to promote affordable living space. Efforts are made to reduce approval hurdles and accelerate construction processes. New municipal apartments, which went into construction in 2022, are planning to complete 450 new units for 2025. This project aims to cover the high need for subsidized rental apartments, especially in the northern districts, where 58 percent of the new buildings are realized.

In addition to the shortage of housing, there is one of the lowest property rates in Austria in Vienna with 19.8 percent. The majority of the apartments in the city are therefore rental apartments, which is due to years of promoting social housing that has existed since the 1920s. The period between 1950 and 1970 was particularly formative for social housing, which still leaves its traces.

The almost 725,000 main rental apartments in Vienna are a challenge even with a high need for living space. With an average living space of 75.3 square meters, the apartments in Vienna are smaller than in other federal states, which is particularly important for one -person households. The proportion of one -person households in 2023 was 44.7 percent.

In view of the existing challenges on the residential property market, including rising rents and declining new construction numbers, it remains to be seen how these measures of the City of Vienna will work. The urgent need for a stable and affordable living space in the capital is undeniable.