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Vienna's housing shortage is getting worse: building numbers are falling drastically!
The Vienna housing market is facing challenges: high demand, falling new buildings and rising rental prices are exacerbating the crisis.
Vienna's housing shortage is getting worse: building numbers are falling drastically!
The situation on the Vienna housing market is anything but rosy. According to a report by VOL.AT demand exceeds supply many times over, further exacerbating the crisis. Around 8,800 newly built apartments were completed this year - that corresponds to a decrease of around 20% compared to the previous year. These figures clearly show that the city has a serious problem when it comes to housing. The privately financed rental sector is particularly suffering, with new construction output being more than half below the average of the last five years.
The causes are obvious: high construction costs, ever-increasing population growth and a low completion rate are having a negative impact on the market. The development remains worrying; Only a slight increase to under 10,000 apartments is forecast for 2026. That is far from enough to alleviate the existing housing shortage.
Regional differences and price increases
Where is construction actually taking place in Vienna? The districts of Donaustadt and Floridsdorf are ahead, recording more than half of all new buildings. These areas still offer land reserves and comparatively lower land prices, which encourages the development of new residential projects. But while construction is going on in these districts, condo prices are going through the roof. Prices are currently around 6,500 euros per square meter – a real price breaker!
Rental prices are also not coming to a halt. Prime rents in Vienna now reach 19.40 euros per square meter per month, which represents an increase of 5.4% compared to the previous year. There is no trend reversal in sight, so tenants have to prepare for further burdens.
What are the solutions?
The big mystery remains how the city government can respond to these tense conditions. Experts suggest relaxing building regulations to create more living space while keeping construction costs under control. It is expected that there will be an increased focus on cost-effective construction projects in order to appeal to a broader segment of the population and, in particular, to offer more affordable housing to the middle class.
A combination of faster construction, cheaper prices and forward-looking urban planning could lay the foundation for a turnaround in Vienna's housing market. But until then, looking for an apartment remains a real adventure for many.
The situation remains tense and we can only hope that a turnaround will come soon. ORF Vienna will continue to report on developments in the housing market and keep citizens informed.