Rent Forecast in Austria: Prices Are Soaring Every third household in Austria struggles with rising housing costs. The average rent reached €9.9 per sqm in 2023, and new construction is expected to drop 60% by 2025. Topics: News, Economy.

Rent Forecast in Austria: Prices Are Soaring

One in three Austrian households faces financial strain from rapidly rising housing costs. In 2023, the average rent reached €9.9 per square meter, and experts predict this will outpace general inflation. What does the future hold for tenants?

Current Market

According to Statistik Austria, rents rose 7.7% in 2023. In Vienna, the average is €17.2 per sqm, in Innsbruck €21.6, and in Salzburg €19.2. The lowest rates are in Burgenland at €10.7 per sqm — but even there, rents rose 16% year-on-year.

Grim Forecast

Experts predict completed rental apartments will drop 25% in 2024 and up to 60% in 2025, falling to a historic low of 1,800 units. Rising energy prices and growing demand compound the problem.

Why Prices Are Rising

New construction is plummeting. EHL wohnen CEO Karina Schunker stresses the need to accelerate building to meet high demand. Without intervention, a significant affordable housing shortage looms.

Rent increases are also expected to outpace general inflation, further squeezing tenants.

Government Response

Despite warnings from experts and unions, the ÖVP-Green government cannot agree on rent controls. Economists advocate state intervention, but landlords are pushing back.

Without change, homelessness could rise significantly. Many tenants already struggle to pay rent, and experts urge immediate action.

The rental market outlook is deeply concerning. Without active government intervention and increased construction, Austria’s housing market risks severe problems.