Housing in Vienna Amsterdam Conference on Social Housing Strategies in Cities; June 2017 Eva Bauer/Österreichischer Verband gemeinnütziger Bauvereinigungen (Austrian Federation of Limited Profit Housing Associations)
A first glimps on housing in Vienna
A historical view on population increase and new construction Persons/Households/Dwelings Averages for periods 35.000 30.000 25.000 20.000 15.000 10.000 5.000 0 Vienna: Population and New Construction 1869-2018 Population Increase Household increase New Construction Population (right axis) 2.500 2.000 1.500 1.000 1.000 inhabitants Boom periods of population increase + housing boom Long periods of moderate population increase + housing boom Reason: very bad housing conditions and need for improvement -5.000 500-10.000-15.000 0 2017: 1,854 Mio inhabitants, 970.000 dwellings, 902.000 households
Housing in Vienna: Actors Institutions - Instruments Private Landlords (tenements) Since ever Rent Regulation (from 1920) (Limited Profit) Coops and Companies, from 1900 Housing Promotion and Limited Profit regulation (from 1910) Municipality (Public) Housing from 1920 Owner Occupation in Condominiums (from 1948) Private Landlords New Type (Letting of dwellings Housing Promotion Intensified from 1950
Viennese housing stock and different actors/institutions (970.000 dwellings) 275.000 250.000 225.000 200.000 175.000 150.000 125.000 100.000 75.000 50.000 25.000 0 Housing Stock Vienna 2015 by construction periode and provider/tenure Owner Occupation Private Rent Limited Profit Rent Municipality housing Rent limitations since 1917/1920, stepwise adapted v 1919 1919-1944 1945-1960 1961-70 1971-80 1981-90 1991-00 2001-2011 2011-15 Limited Profit Hous. Ass.: Cost / regulated rent 100 90 80 70 60 50 40 30 20 10 0 Vienna: average floor space and basic amenities 1917ff 1917 1951 1961 1971 1981 1991 2001 2011 m2/dwelling % with inside tiolet % with central heating 37% privat rent (25% regulated) 25% municipality 17% limited profit rent 21% owner occpuation (part. with subsidies/provided by Limited prof. provider
Key features of subsidisation and functional interrelation in Austria/Vienna Social mix in housing estates High output of housing with high quality No income ceilings until 1968 Large target group, no or high income ceilings Income ceilings Vienna 2017 Monthly income net (after social insurance and taxes) 1 Person 3.190,-- 2 Personen 4.760,-- 3 Personen 5.380,-- 4 Personen 6.000,-- Bias on object related subsidies with auxiliary role of indiviual allowances Moderate rents Apply only at start of a lease Appr. 80% of households below ceilings Middle intensity of subsidisation
rent in Euro/m2 13 12 11 10 9 8 7 6 5 4 3 2 1 0 Private Vienna - Rent levels 2015 in different segments (rents + charges/utilities) Lim Prof Muicipality TOTAL + 16% Private + 10% Lim Prof Muicipality TOTAL Average rent 2015: 502 Private, before 1945 regulated Total Stock 2010 Total Stock 2015 Rent contract before 1994; 2015 New rent contract 2015 Private, after 1945 Lim Prof Muicipality TOTAL Private, before 1945 regulated Private, after 1945 Lim Prof + down payment 2.000 40.000 = rent prepayment, depriciated by 1% by year, high payment => right to buy Muicipality TOTAL lim prof hous ass / 72m2 550-575; 11.000; 18% Rented dwellings in Vienna 2015 private rent / 60m2 / 670; 40.000; 64% muncipality rent / 11.000 59 m2 / 450; 11.000; 18% Only lim. prof. hous ass. provide affordable larger dwellings
Example of inner city brownfield development Wien Nordbahnhof 10.000 dwellings until 2025; mix of providers, tenure, financing
Housing in Vienna: Challenges and solutions 1. Huge immigration and population increase: demand for affordable housing 2. General Building boom, but little increase in subsidised housing mis match (new housing construction: dwellings per 1.000 inhabitants 2011 2016 4,8; expected 2016 2018 7,0) 3. Instead: diversification of promotion schemes models with less subsidies for higher incomes models with more subsidisation for urgent need 4. Bottle neck in the supply of land: old instruments do not work any longer new instruments needed 5. High quality high costs of construction => reducing quality?
Housing in Vienna: Big Housing Issues 1 1. Increase housing production despite non-increasing subsidies: + production of non-subsidised housing for higher income groups + lobby for additional financing (EIB; new investors.) 2. Finding land and instruments for the allocation of land for affordable housing Reactions to increasing migration and growing population: + Increasing housing production + Discussing optimal models of refugy-housing; e.g. model of non-permanent buildings has been refused by housing associations Affordability: at present housing policies rather rely on the price lowering effects of an increasing housing offer than on increasing the offer of subsidised housing
Housing in Vienna: Big Housing Issues 2 Inclusion Is a big challenge: since there is as margin in the rents within the social sector (municipality housing limited profit housing) low income groups concentrate in municipality housing - and also in older stock of housing associations; in the last years segeration increased according to recent studies Required changes in the city: Land policies and instruments Well working instruments: Limited Profit Housing associations in combination with housing promotion system providing housing for (nearly) all Mix of different associations (34 co-operatives; 23 companies; different background and shareholders; average size 4.350 dwellings)