Housing shortage in Lower Austria? Land is planning investments in construction projects!

Housing shortage in Lower Austria? Land is planning investments in construction projects!

Wolkersdorf, Österreich - On March 24, 2025, Governor Johanna Mikl-Leitner and Isabella Stickler, the chairwoman of the non-profit building, residential and settlement cooperative Alpenland visited a construction site in Wolkersdorf. The focus of the visit was the creation of affordable living space in Lower Austria, especially in economically challenging times. Mikl-Leitner underlined the important role of the construction industry and emphasized the challenges that have arisen in recent years by the KIM regulation and the increasing construction and energy costs. This regulation had created strict conditions for residential loans in Austria, which according to industry representatives favored the decline in residential construction. Up to 50 percent of the potential applicants received no loans due to the provisions.

The loosening of the KIM regulation is now regarded as a crucial step towards a trend reversal in residential construction. Access to living loans has simplified, which benefits the goal of creating affordable living space. In addition, the Lower Austrian state government made an unprecedented 841 million euros for subsidized residential construction in 2024. Of these, 691 million euros will flow into the creation and renovation of over 15,400 residential units and 150 million euros to support the compatriots. This represents the highest funds ever provided for the residential building sector.

Current challenges and development

The construction industry is currently facing massive challenges, caused by severely increased soil prices, high construction prices and high capital market interest rates. These factors lead to a standstill in the Austrian construction industry. Andreas Köttl, President of the Association of Austrian project developers, reports on a decline in building permits and emphasizes that many approved construction projects are currently "on-hold". According to the 1st Austrian new building report, a decline in completion figures will be forecast by up to 80 percent from 2025, which could have serious effects on the living space situation in the coming years.

In addition, data from the non -profit housing construction show that only 14,900 apartments were completed in 2023, which is 10 percent below the tenth average. Although the Federal Government's 2.2 billion euros has set some positive impulses, the improvements in lending have so far only been marginal. Industry representatives warn of acute shortage of living space, which is why immediate new building is required to prevent job losses in the construction industry. The initiatives for promoting residential construction in Austria, such as the "More at home" in Austria! "Campaign, are supported by leading companies in the industry and underline the urgent need to set quick action.

outlook and innovations in residential construction

In 2025, the Alpine land plans to hand over around 400 new apartments, which will offer about 700 people a new home. With a construction volume of 70 million euros in 2024 and a balance sheet total of over one billion euros, the Alpenland shows that it is working intensively on the future of living. In addition, the Lower Austrian residential research supports innovative projects in order to meet the climatic requirements in residential construction. The construction project in Wolkersdorf combines research and practical know-how, which could pave the way for sustainable living development.

Overall, developments and the planned measures underline the central importance of residential construction in Lower Austria and the efforts to find innovative solutions for the challenges of today. While the construction industry faces major challenges, the current situation also offers opportunities for redesigning and improving the housing market.