Rental price brake: Why Austria's living market is in crisis!

Rental price brake: Why Austria's living market is in crisis!

Laimgrubengasse 10, 1060 Wien, Österreich - In Austria, the discussion about rental prices is heated again. A decision on the rental price brake, which was issued without a clear reason last year, causes resentment. Current data from Statistics Austria show that the main rent has risen less since 2020 than general inflation. According to the statistics, this was 4.4 % and thus exceeded the increase in rental prices. Representatives of the Austrian House and Land owner Association (ÖHGB) warn that the legal regulation of rents is a dangerous step backwards.

ÖHGB President RA Dr. Martin Prunbauer criticizes the control of the rental market and emphasizes that the additional costs such as gas and electricity are the real price drivers that are not sufficiently taken into account in the political discussion. The housing costs in Austria have been stable for years with around 19 percent of the income. In addition, the increased interventions in the rental market threaten significant consequences such as reduced investments and staggering renovations, which could lead to a decay of the building stock. "We are heading back on the gray Vienna of the 1970s!" Said Prunbauer.

tenants and landlords affected

In addition, the minimum limitation period for rental contracts is increased from three to five years, which in particular presents small and medium -sized landlords with challenges. This could lead to fewer apartments come onto the market because flexibility is lost, for example when apartments are needed for students. In this context, the question arises: Are these measures really wanted? As the Austrian press agency (APA) this leads to a tense situation on the housing market, but also the tenant significantly concerned.