Challenge housing costs: income increases, remain worries!

Challenge housing costs: income increases, remain worries!

A current survey by the Ministry of Social Affairs carried out by Statistics Austria and the Institute for Higher Studies (IHS) shows a mixed picture of the income situation in Austria. Despite an improvement in the financial situation, a significant part of the population reports on serious challenges regarding housing costs. Overall, 15 percent of the respondents perceive them as great financial burden. This number remains stable compared to the previous quarter, but is five percentage points lower than in the previous year, such as Vienna.at reported.

In the fourth quarter of 2024, 40 percent of those surveyed stated that they had improved their income situation compared to the previous year, while 21 percent of income losses suffered. It is worrying that about 10 percent of those surveyed, which corresponds to around 820,000 people, have difficulty doing their monthly income. This problem affects people with low incomes and unemployed people who have an increase in financial difficulties. According to the results, 33 percent of the 18 to 74-year-olds have stated that they get caught up with their household income.

increasing living and energy costs

The main causes for the difficulties mentioned lie in the increased costs for food as well as living and energy costs. The share of housing costs on the available income was 24.5 percent in Germany in 2022, while tenant households had a load of 27.1 percent. In addition, 11.9 percent of the population were affected by a housing costs, whereby there were the highest loads under one-person households and single parent, such as the Political education determined.

The average gross rent in Germany was 598 euros, which is composed of a net rent of 513 euros and additional costs of around 85 euros. It is regrettable that 5.1 percent of the population in 2022 fell in favor of rental or mortgage payments in 2022, while 6.7 percent could not afford to keep their apartment appropriately warm. These financial challenges are particularly drastic for tenant households.

expectations for the future

Despite the increase in financial difficulties, Minister of Social Affairs Korinna Schumann is optimistic and describes parts of the results as "first, delicate silver streak on the horizon". Nevertheless, every fifth expects that his household income will deteriorate in the next twelve months, which corresponds to the previous year's level. 68 percent of the respondents expect a deterioration in the economic situation in Austria - an increase of 17 percent compared to the previous quarter. Only 7 percent look positively into the future.