Red alert: Housing costs households at risk of poverty almost 42%!

Red alert: Housing costs households at risk of poverty almost 42%!

The alarming reality for households at risk of poverty in Lower Austria becomes apparent in a brand new study by the Lower Austrian Chamber of Labor (AKNÖ): These households already have to spend 42 percent of their income to cover housing costs. AKNÖ President Markus Wieser expressed clear criticism: “It cannot be the case that more and more people have to spend almost half of their income just for a roof over their heads.” This development affects around a sixth of the total population, and housing costs have risen above the EU average of 38 percent in recent years, study author Wolfgang Amman notes, raising further concerns. There is a need for action for low-income households and new entrants to the housing market, as construction activity in the region has fallen dramatically.

Decline in new buildings and rising construction prices

Construction activity in Lower Austria recorded a worrying decline; From more than 15,000 approved apartments in 2021, the number fell to only around 6,600 in 2024 - a decline of almost 60 percent. This development affects both private homes and social housing, which has far-reaching effects on the entire construction industry, which employs around 200,000 people, as Amman explains. The immense pressure on housing supply is compounded by ever-growing demand, particularly for smaller households. The annual additional housing requirement in Lower Austria is estimated at 4,700 units by 2034, which increases the urgency of finding effective solutions.

In order to defuse the situation, the AKNÖ is calling, among other things, for earmarked housing subsidies and an increase in funding rates for new social buildings, while at the same time help for young families and households is urgently needed. Wieser emphasizes that it is essential to optimize existing funding models in order to ensure affordability in the residential sector. Amman urgently warned that stop-and-go funding management should be avoided, as this would seriously affect the trust of the population. This information was provided by both orf.at as well as from courier.at comprehensively reported.