Vienna

Vienna’s housing crisis in 2025 is defined by sharply rising rents, a significant shortage of new housing supply, and extreme competition for available apartments. In just five years, rents have increased by nearly 30%, with annual growth rates recently hitting 9%. Supply has dropped steeply—new construction of rental units in 2025 is set to be 60% lower than in 2024, with only about 1,800 new rental apartments expected. Vacancy rates citywide remain very low, consistently below 2%, as population growth fuels persistent demand for all types of housing.

Rents now range from roughly 12 to 16.5 euros per square meter per month depending on district, with central locations commanding up to 22.5 euros per square meter. The average monthly rent for studios is between 630 and 890 euros, for one-bedroom apartments about 1,045 euros, and for two-bedroom units around 1,400 to 1,530 euros. Prices for home purchases span a wide range, with central districts reaching up to 27,000 euros per square meter.

Those most affected by the housing crisis are renters—who account for the vast majority of residents—including students, young professionals, families, and immigrants. The crisis puts a financial strain on lower- and middle-income groups, drives local businesses from popular districts, and contributes to social tension, as basic housing becomes less affordable and accessible for typical Viennese households.

In Vienna, about 76% of main residences are rental apartments, while only 24% are owner-occupied. Over half of all rentals are either owned by the city or nonprofit associations: around 55% of rented homes fall in this category, making Vienna unique among major cities. Home prices in 2025 average between 3,600 and 27,000 euros per square meter, depending on location, with median values in peripheral districts around 3,600 euros per sqm and much higher in the city center. The median rent for existing apartments ranges from approximately 12 to 16.5 euros per sqm per month; the citywide average monthly rent for a 1-bedroom apartment is about 1,045 euros.

Publicly owned and nonprofit housing—referred to collectively as “social housing” in Vienna—accounts for roughly 60% of all residences. Social housing in Vienna is not the same as public housing in the US or UK; instead, it includes municipally owned buildings (traditionally “public housing”) as well as units managed by nonprofit cooperative associations. Eligibility extends to a broad segment of the population due to liberal income limits, ensuring that social housing serves both low- and middle-income households. This integrated approach makes social housing a stabilizing force in the housing market and a central part of city life.

Vienna’s city administration approaches affordable and sustainable housing through a comprehensive, long-term strategy integrating strict rent regulation, inclusive social housing, active public investment, and climate-focused innovation. Recent targets include maintaining housing affordability for broad segments of the population, increasing social integration, and achieving net-zero climate pollution from the housing sector by 2040.

Key initiatives and programs:

• Strict rent controls apply to approximately 77% of private rentals, curbing excessive price hikes and stabilizing costs.
• Large-scale municipal and cooperative housing schemes continue to expand; these use public land, subsidies, and competitive tenders where nonprofit cooperatives and private developers must meet demanding quality, affordability, and sustainability standards.
• Climate policy is tightly linked: All new buildings and extensions require rooftop solar panels. Older housing stock, especially social housing, is being upgraded through energy-efficient retrofits, replacement of gas heating with electric heat pumps and geothermal systems, and superior insulation to cut both emissions and utility costs.
• Significant urban redevelopment projects, such as converting disused rail yards and a decommissioned airfield, add thousands of new mixed-use, socially integrated homes.
• The city supports mixed-income communities and combats homelessness with targeted supportive housing measures.

Vienna sets internationally recognized standards by combining affordability, sustainability, inclusivity, and high quality in its housing policies.

In Vienna, several organisations and individuals have actively declared their intent to address the city’s housing crisis and promote affordable, sustainable housing. The Arbeiterkammer Wien (Vienna Chamber of Labour) is a key advocate, producing research and proposals on expanding affordable housing through urban densification, enhancing the diversity of housing types, and ensuring long-term affordability. They also promote cooperation between different stakeholders, including local policymakers, property management companies, and representatives from district-level politics.

Important collaboration partners for such projects could include:

• Academic experts from the Technical University of Vienna (TU Wien), which has a strong track record in urban development and sustainable construction research.
• Nonprofit housing cooperatives and socially oriented developers, who are involved in competitive tenders for municipal housing projects.
• NGOs such as Fonds Soziales Wien (FSW) and Caritas, providing crucial support structures for homeless and vulnerable populations and active in housing policy advice.
• Fachstelle für Wohnungssicherung (FAWOS), which works specifically to prevent evictions and secure tenancies for people at risk of losing their homes.
• Startups focused on climate-tech or urban innovation, including those developing efficient retrofit solutions or digital platforms for resident engagement.

Strong social work organisations and advocacy groups, such as P7 – Wiener Service für Wohnungslose, are also central figures in Vienna’s housing landscape, bridging gaps between policy, practice, and affected communities.

Housing cooperatives play a significant role in Vienna’s housing sector, with nonprofit cooperative housing making up about 18% of all dwellings in the city. This sector, together with municipal housing, ensures that over half of all rented apartments in Vienna are owned or managed by the public or nonprofit entities. Cooperative housing is primarily aimed at providing long-term affordable and quality apartments through the limited-profit housing law.

Recent years have seen a slowdown in the construction of new cooperative and nonprofit housing, largely due to increased building costs, scarce affordable land, reduced subsidies, and stringent rent regulation. In 2024, around 4,240 nonprofit dwellings were completed in Vienna, marking a 13% decrease from the previous year and representing a broader downward trend. Nevertheless, Vienna’s cooperative sector remains dynamic in terms of energy-efficient renovations and expansion into new urban development areas.

The city actively promotes cooperative housing through subsidized land allocation, competitive tenders, and requires high standards for affordability, sustainability, and mixed-income integration in new projects. Policies favoring cooperative housing include binding energy upgrades, rent regulation, and dedicated funding to foster social cohesion and adaptability amid changing demographics and climate targets. Despite recent challenges, cooperative housing continues to be a stabilizing and integrative force in Vienna’s unique housing model.