Dream home or illusion? Young Tyroleans are fighting for their own four walls!

Dream home or illusion? Young Tyroleans are fighting for their own four walls!

The discussion about the ability to finance home ownership for young people in Tyrol is being revitalized by current political and economic trends. The debate is led by Tyrol's governor Anton Mattle, who is calling for the existing lending guidelines to be relaxed. This happens against the background that the ÖVP criticizes the rigorous conditions for lending and points out the associated challenges for young buyers.

The Upper Austrian Youth and Women's Organization (JVP) is reacting to the current situation by accusing the state government of not promoting home ownership opportunities for young people. According to Sophia Kircher, the JVP state chairwoman, there is a lack of realistic opportunities to acquire property.

Influence of rental prices

The specialist group of real estate and asset trustees in the Tyrolean Chamber of Commerce argues that restrictive lending has a direct impact on rental prices. Chairman-Deputy Arno Wimmer points out that the strict guidelines exclude potential buyers, which subsequently leads to an increase in demand for rental properties. The Greens support this view by pointing out that high land and building prices as well as low incomes are the main causes of rising rental prices. Zeliha Arslan, housing spokeswoman for the Green Party, is calling on the state government to do more to make housing affordable.

Rental prices are extremely volatile, especially in urban areas. In cities, the price of rental apartments depends heavily on the location. Apartments near city centers and public transport links are usually significantly more expensive than those further away. As a result, young people in particular in rural areas who do not live near popular excursion destinations or ski areas are confronted with higher rental prices.

Lending and public discussion

The Financial Market Authority (FMA) now has the task of developing a successor regulation for the KIM Regulation, which expires on July 1, 2025. The FMA currently considers the existing lending guidelines to be sufficient, but requires a capital share of 20%, a maximum of 40% of income for repayment and a loan term of a maximum of 35 years. However, this does not go down well with the ÖVP, as they see the rules as a main reason for the decline in the construction industry and the difficulties in purchasing homes.

The ongoing debate highlights the different views and the tense housing market. While the ÖVP is committed to making lending easier, the Greens emphasize the need for an honest and open discussion about the challenges that the real estate market poses for young people. Both sides recognize the urgency of finding suitable solutions to rising rental prices and the problems with purchasing a home.