Schneider withdraws: Winkler receives support for SPÖ chairmanship!

Schneider withdraws: Winkler receives support for SPÖ chairmanship!

In a surprising move, Frank Schneider, the board director of LAWOG, announced today that he will not run for the chairmanship of the SPÖ Upper Austria. Instead, Schneider is in favor of the election of Martin Winkler, whose application was officially made on Thursday. This decision comes in light of the party's upcoming challenges and goals in social housing.

Schneider and Winkler recently met in person and emphasized that they agree on many points, especially on economic issues. Schneider emphasizes that both of them care about the future of Upper Austria as a location. Martin Winkler is pleased with Schneider's support and recognizes him as an expert in social housing with strong social democratic commitment. This unity could be crucial for the SPÖ to advance its agenda.

Social housing in the focus of the SPÖ

SPÖ support for social housing goes beyond internal party elections. SPÖ leader Andreas Babler has proposed a constitutional provision that would reserve 50% of new building land for social housing. This measure aims to create more affordable housing and at the same time stimulate the construction industry. This is happening against the backdrop of rising housing costs in Austria, which are seen as the main cause of record inflation.

As of December 2024, the average rent in the private sector was already 40% higher than that in the non-profit sector. This has resulted in non-profit property developers coming under pressure, particularly from rising land prices, which are making their social housing activities more difficult. Babler demands that at least 50% of the newly dedicated building land in metropolitan areas should be reserved for non-profit housing.

Reform proposals and political challenges

In order to support these projects, the SPÖ's “Council of Experts” is discussing reform proposals, which include, among other things, measures against the hoarding of building land for speculative purposes, as well as a modernization of the Land Procurement Act. However, comparable regulations are not always implemented effectively in some federal states. While Vienna introduced the “subsidized housing” designation category in 2019, this only accounts for a small proportion of new construction activity.

Similar categories exist in Upper Austria and Salzburg, but their application is often at the discretion of the cities and municipalities. Tyrol has reserved 52 hectares of land for subsidized housing in order to promote social housing. However, Babler faces a political challenge as the SPÖ needs a two-thirds majority for a constitutional provision, which is currently not in sight.

The ÖVP, on the other hand, has other priorities in social housing. Karl Nehammer, the leader of the ÖVP, has put forward proposals aimed at promoting ownership and rent-to-own models at lower prices. This includes the opportunity for tenants to purchase apartments from non-profit developers at indexed construction costs, as well as a plan to support ownership through tax relief.

The political landscape surrounding social housing remains exciting, while the SPÖ and its actors try to clearly define their positions and strategies.