Salzburg's housing crisis: waiting lists explode - what now?

Salzburg's housing crisis: waiting lists explode - what now?

The city of Salzburg plans to increase rental apartments in the current year 2023, which seems urgently necessary given the continuing price increases on the housing market. KPÖ Vice Mayor Kay Michael Dankl has announced these measures and emphasized that almost 140 apartments were assigned in the first quarter of 2023. The allocations mainly took place in the districts of Lehen, Liefering, Itzling and Taxham. About a third of the apartments awarded went to families, while two thirds of the applications were brought in by one and two-person households.

Around half of applicants for the urban apartments are Austrian citizens. The rest are almost 40 percent of applicants from third countries, while about ten percent come from Switzerland or other EU countries. However, Dankl expects that the reforms, such as the increase in income limits, will only show their effects later in the year. The municipal housing committee has already announced a next round of public procurement, which includes around 30 apartments in the Lehen "square". This development could react to the rising rental prices that are a significant challenge for many citizens.

rising rental prices in the urban area

With the increase in rental housing, the city will also have to take into account the increased rental prices. The pressure on the rental area in Salzburg continues to increase, especially outdoors. According to a WiFo study on behalf of the Salzburg Chamber of Labor, rents rose by 7.2 percent in 2024, which is above the inflation rate of 2.9 percent. In the urban area, the average rental price is 20.5 euros per square meter, which is an enormous financial burden for many people.

An example illustrates the situation: a three -room apartment (85 m²) in the Riedenburg district already costs 3,800 euros per month including operating costs. The developments are alarming, you also look at the price increases compared to 2020, where housing costs have increased by 34.8 percent. According to Elisabeth Rauscher from Team Rauscher, the rising operating costs are a main reason for the rent increases, with an average price increase of 10.4 percent in rental apartments in the first quarter of 2025.

market analysis and outlook

The situation in the real estate market is ambivalent. While there is a doldrum in the new building industry, the prices for used apartments rise again. In 2024, 750 residential properties were sold in Salzburg, which represents a significant decline compared to the 1,800 sales in 2019. In the market for used condominiums, prices have dropped by an average of 3.4 percent, while new construction prices have fallen by 1.7 percent.

The average price for new condominiums is now 8,600 euros per square meter in Salzburg, although prices of over 13,000 euros per square meter are not uncommon in particularly sought -after districts. This price development is influenced by higher interest rates and stricter real estate financing rules that slow down the sale of ownership.

For further information on the rental prices in Salzburg and the development in the housing market, the Salzburger Nachrichten to current studies and analyzes.

A comprehensive analysis of the current situation also offers the orf Salzburg , while the plans of the city to increase the rental housing issue in detail at kosmo