Renting in Carinthia: Non-profit housing projects are showing initial success!

Renting in Carinthia: Non-profit housing projects are showing initial success!

In Carinthia, current data shows that the average net rent in 2024 will be 5.6 euros per square meter. While the non-profit rental prices are significantly lower at 4.75 euros per square meter, private rental apartments cost an average of 7.1 euros per square meter. LHStv.in housing officer Gaby Schaunig emphasizes that living space is a basic need and should not be viewed as an object of speculation. A significant part of the living space in Carinthia is managed on a non-profit basis, with around two thirds of the apartments being managed by this organization. In addition, around 300 new non-profit apartments are built every year to meet the housing needs in the region.

An example of efforts to create affordable housing is the project in Harbach, where subsidized condominiums are provided at a price of 3,500 euros per square meter. The state government considers the future promotion of property in the non-profit sector to be essential in order to promote both social cohesion and economic stability.

Challenges in the construction industry

However, the construction industry is facing difficulties. The construction industry has deteriorated significantly in building construction in 2023, and the downturn is expected to continue in 2024. This goes hand in hand with rising unemployment figures in the construction sector. In order to mitigate this negative development, the federal government presented an economic stimulus package for residential construction with a volume of around 2.5 billion euros on February 27, 2024. This package includes several key points, including tax measures to support the construction industry and the provision of federal funds for more affordable housing.

The planned measures also include temporary facilitation of property ownership and funding to improve the quality of existing living space. However, the legislative proposals submitted at the National Council meeting on February 28, 2024 were initially kept vague and ran until the presentation of comprehensive amendments on March 14 and 20, 2024. The implementation of these measures could have both price-increasing and dampening effects on the real estate market in the medium term, depending on demand and supply.

Housing costs and their effects

A central aspect of the debate about housing construction is the cost of housing for private households. These represent a significant part of household income and include not only rental costs, but also operating costs, energy costs and maintenance costs. According to current data, the development of rents per quarter and the total housing costs for main residences are recorded, with the housing cost share of household income being significant. Statistics show that private households continually have to invest large sums in their housing, which points to the need for efficient housing policies.

Overall, the situation in Carinthia shows a picture of a region with a diverse approach to solving the housing problem, but at the same time also faces the challenges that the construction industry and rising housing costs bring with it. The policy response and implementation of the economic stimulus package will be crucial to meet the increasing demand for housing and the growing costs.

Further details on rental price developments in Carinthia can be found in the report from Click Carinthia, while the housing stimulus package is in the document of Parliament.gv.at is described in more detail. Statistical data on housing costs is available statistic.at to find.