Vienna in the rent price tsunami: record highs threaten those looking for an apartment!

Vienna in the rent price tsunami: record highs threaten those looking for an apartment!

The air is getting thinner in Vienna – both for those looking for accommodation and for tenants. The capital is experiencing a historic housing crisis, which is manifesting itself in record rental prices of over 20 euros per square meter. The demand for living space remains high, while supply is falling, making the situation increasingly difficult for many Viennese. Loud ad hoc news The average asking rent rose by up to nine percent last year. The forecasts for 2025 sound the alarm: the number of newly built apartments in particular will fall far short of demand.

With only around 11,000 new apartments required annually, only around 1,800 rental apartments could be expected in the coming year - a decrease of almost 60 percent compared to 2024. In the first half of 2023, not even 10,000 new apartments were built, which represents a decrease compared to the previous year. Property developers are increasingly relying on condominiums, which is putting additional pressure on the rental market. Those interested in buying, on the other hand, have it easier because the competition for rental properties is tougher than ever.

The reality of the rental market

The urban demand is overwhelming, but at the same time the supply of rental apartments is becoming increasingly scarce. This is not only reflected in the numbers. More and more new construction projects are designed specifically for sale, which further reduces the availability of rental apartments. The average rent including operating costs reached the mark of 10 euros per square meter in the first quarter of 2025, which corresponds to an increase of 3.1 percent compared to the previous year Cosmo.

Smaller apartments, often around 58 square meters in size, are particularly in demand. Construction activity is concentrated in the northern districts of Vienna such as Floridsdorf, Donaustadt, as well as in Favoriten and Liesing. Overall, the residential property ratio in the capital is remarkable: 77.2 percent of the apartments are rented, while the ownership share of only 19.8 percent is the lowest in a federal state comparison - a sign of the need for social housing.

The political measures

With the criticism of the overheated housing market, the pressure on politicians is also increasing. The city of Vienna is trying to create affordable housing through various initiatives and speed up the approval process. Nevertheless, the failure to maintain new construction output in the coming years is seen as worrying. The required measures could promise an improvement, but the chances that rental prices will soon fall in the short term are slim. The experts even warn of a division of the market – young people and families have a particularly difficult time finding suitable living space.

In summary, it is clear that Vienna's housing crisis represents a growing challenge. While prices continue to rise, hope for an improvement in the situation remains limited - in keeping with the history of social housing in Vienna, which began with projects in the 1920s. The debate about solutions will therefore remain very popular in the coming years.