In Europe, between 2010 and 2023, Rental price It increased on average 23% According to the latest Eurostat report, among the reasons for the increase, inflation is the first place. Short term rentals which has taken houses and apartments off the market, particularly in the historic centers of European cities. But it’s not just that. Among the reasons for the higher rents are cooling demand for mortgages due to high interest rates on loans and an increase in variable mortgage repayments following tight monetary policies adopted by the ECB to combat inflation. and made fixed-rate mortgages less affordable, discouraging citizens from buying homes.
The result? A boom in rental applications amid housing shortage: the perfect mix for skyrocketing prices. At the forefront of this increase is Estonia, where prices increased by +217%, followed by Hungary (+185%), Lithuania (+162%), Latvia (+135%), the Czech Republic (+123%) and are Austria (+123%). +111%). Among these countries, Austria stands out for its high rate of non-domestic citizens. A record, shared with Germany, that makes the problem of high rents particularly critical.
Rental housing in Vienna, how the subsidized housing system works.
However, Austria was up to the challenge thanks to the “Vienna Model”, a successful housing system that has survived for more than a century. In the last two years, as reported. The GuardianThe model has attracted at least four delegations of California political leaders interested in learning the ins and outs of the city of Austria’s housing policies to address California’s growing homeless population, which has surpassed the U.S. It is the largest in the United States. Nevertheless, the secrets of social housing in Vienna, which allows more than 50% of citizens to live in apartments with controlled rent, are few and can be summed up in two words: planning and tax contribution. .
The city of Vienna, in fact, builds about 6,000 new subsidized houses every year, to meet the growing demand for public housing in many European cities. This social housing system is largely based on a tax for housing promotion, which is collected from the income of employees and is equal to about 1% of gross salary. Thanks to this model of tax collection, the city of Mozart can boast affordable rental prices despite the great increase, we are talking about an average rental cost of 658 euros while the average income is the highest in Europe. , which equates to 31,443 euros per year. .
Vienna Areas: Where to Find Cheap Rentals
Vienna is divided into 23 districts, with the most exclusive Vienna center being the Innere Stadt where the average rent for a 70m2 apartment is just €1,160, the highest average price of all the city’s districts. By comparison, in Milan, for the same area, an apartment of this size costs an average of 2,170 euros. To find cheaper accommodation, head a little west along the main metro line to Maria Helferstrasse, Vienna’s shopping street, where 70m2 apartments rent on average 834 euros. If you’re a young professional or student looking for a house to rent in Vienna, the best options are the Neubau and Museum Quarter neighborhoods in the western part of the city center, one of the world’s greatest cultural districts. are one A three-room apartment here costs an average of 1,033 euros per month. Additionally, east of the center, housing prices are much cheaper in the neighborhoods around Wiener Prater, Vienna’s famous public park. A 70 m2 apartment near Prater costs around 724 euros per month.
Subsidized rent in Vienna: requirements for European citizens
Regarding subsidized rents in Vienna, European citizens have the opportunity to access apartments at subsidized rents provided they respect certain conditions: residence in Vienna for at least two years and net annual income within the limits established for 2025. comes to, i.e. 59,320 Euros. 88,400 euros for a single person and 88,400 for a couple.