With regards to best-practice examples within the housing debate, Vienna is a typical reference. Certainly, the Austrian capital options prominently in narratives about profitable housing insurance policies. An article within the Observer concluded that Vienna exhibits “respectable properties for all” isn’t an inconceivable dream. And the New York Instances even declared it “a renters’ utopia”.A substantial a part of the attraction of Vienna pertains to its massive social-housing inventory. It accounts for some 43% of the roughly 1m housing models within the metropolis. About half of it’s municipally owned council housing. The opposite half is supplied and administered by limited-profit housing associations – an Austrian model of social housing suppliers which might be permitted to make a small revenue to finance their operations. Social housing isn’t just for these on low incomes, but in addition caters to middle- and even some upper-middle-class households.The optimistic impacts are instantly measurable. Lease ranges within the social-housing sector are considerably decrease than within the personal rental market: newly rented models within the limited-profit and council housing sectors price about 30% much less. Housing high quality, in the meantime, is commonly greater, notably within the limited-profit housing inventory. Furthermore, the supply of social housing additionally dampens hire ranges within the personal rental market, as a current examine confirmed.The sector has not grown in a single day. It originated within the municipal socialism of “Crimson Vienna” within the Twenties, when the Social Democratic Employees’ celebration arrange far-reaching social insurance policies to enhance the dwelling situations of the working class. Financed by progressive taxes, housing performed a big function. At this time, the Social Democrats are nonetheless in energy and social housing provision continues, albeit in a distinct type. Council housing building has waned for the reason that Nineteen Eighties, and limited-profit housing has elevated. A substantial quantity of the financing comes from a 1% levy on the salaries of each worker in Vienna.Graph displaying how rental costs fluctuate in EuropeA notably placing characteristic of Vienna’s social housing sector is its exceptional stability. Whereas privatisation has left massive dents within the sector in cities resembling London, Berlin and different massive cities in Europe, in Vienna, the affect has been rather more average. Within the early 2000s, the Austrian conservative/rightwing coalition authorities bought federally owned housing associations to monetary traders, which affected the inventory in Vienna. In the meantime, within the Nineties, a proper to purchase was launched by the federal authorities for tenants within the limited-profit housing inventory.Up to now, the affect of the programme in Vienna has remained average. Many tenants determined to proceed renting as a substitute. Together with new building, because of this social housing has not declined in relative phrases, however has retained a secure share of the housing market for the reason that Nineties.Not all is as wonderful as these factors might recommend. One difficulty pertains to the accessibility of social housing. In a system the place such a big a part of housing is distributed by bureaucratic means reasonably than by the market, allocation is a fragile matter. Candidates can join a ready record that elements of their housing want and dwelling scenario in addition to earnings. Housing associations allocate components of their inventory by their very own channel, which makes the system moreover difficult. Furthermore, components of the housing-association inventory require tenant down-payments, which generally is a monetary barrier. General, the system is complicated, and tends to prioritise those that know the best way to navigate it and those that have been dwelling within the metropolis for longer.Newcomers to the housing market can hire privately as a substitute. This sector has, nevertheless, modified considerably over the previous three a long time. Previously, commentators have referred to it as an “integration machine”, providing low-quality but strictly regulated and due to this fact comparatively cheap housing to these unable to entry social housing. Within the Nineteen Eighties, the deterioration of the inventory was thought of more and more problematic and the federal government deregulated the Tenancy Act to make letting extra worthwhile. Lease-setting was made extra versatile, short-term rental contracts have been launched and landlords have been allowed to cost greater rents in areas with greater land costs. Whereas the inventory has since been upgraded considerably, cheap housing has been misplaced, to the drawback of housing newcomers who depend on it.One easy takeaway from the Vienna case could also be that coverage issues. Via long-term dedication to social housing and restricted privatisation, housing might be made higher and extra reasonably priced. An much more fruitful takeaway, maybe, could also be that Vienna, by political decisions, has managed to arrange a regime of housing provision that prioritises housing as a primary must a better extent than different European cities. This regime not solely contains policymakers from native to federal degree, but in addition planning authorities, builders, landlords, housing associations, banks and building corporations amongst others. Understanding how this regime got here into being, the way it works and the way it offers with challenges often is the most helpful level to check for cities that wish to be taught from Vienna.
Justin Kadi is Assistant Professor in Planning and Housing on the Division of Land Financial system, College of Cambridge
