Vienna rental model: Lessons for Munich and the EU?

Vienna rental model: Lessons for Munich and the EU?

Rents in Vienna are very popular and are significantly cheaper compared to many major German cities. While tenants in Munich have to dig deep into their pockets - the average price per square meter there is a whopping 19.60 euros - Viennese get an average of 10.50 euros per square meter (as of August 2024). Mercury reported.

A European Union delegation has identified Vienna as a positive example of successful social housing. The city is proving to be a pioneer in the creation of affordable housing, with over 600,000 people living in a total of 220,000 municipal apartments and 200,000 publicly subsidized apartments. Over 60% of Vienna's population enjoys the advantages of subsidized rental apartments, making the city a model for other European capitals.

History and politics of community building

Social housing construction in Vienna has a long tradition that began after the First World War. Between 1919 and 1934, 65,000 apartments were built in so-called “Red Vienna”. Mayor Michael Ludwig emphasizes the political continuity in this area, as social democratic mayors have been steering the city's fortunes since the times of fascism. In contrast to many German cities where privatizations have complicated the housing market, no municipal housing has been privatized in Vienna, which is seen as an advantage ZDF documented.

In 2024, it is estimated that over 600,000 Viennese were living in community housing, which promotes diversity and cohesion in the city. Vienna also has no social hot spots, which sometimes contributes to its classification as the most livable city in the world, although German cities are not represented in the top ten. But social housing is faced with challenges such as rising construction costs and limited space, while renovation of existing buildings is often urgent.

Current framework conditions

In order to move into a subsidized rental apartment in Vienna, singles must prove that they have an annual net income of a maximum of 60,000 euros and have been registered in the city for at least two years. These requirements show that Vienna is creating a clear framework to ensure access to affordable housing. But EU committee chairwoman Irene Tinagli warns that there is no “silver bullet” in the fight against housing problems. Instead, the focus should be on regulating rent prices and strengthening social housing.

In Germany the situation in social housing is more complex. After the Second World War, social housing construction was initiated there as a central measure to create living space. Despite this long tradition, the sector faced a decline in the 1980s and 1990s, followed by a realignment in recent years with renewed funding. However, the Association of the Housing Industry in Germany portrays the Vienna model as unsuitable for German reality, which makes exchange and cooperation on European housing issues more difficult, as shown social-housing.de is summarized.