Housing Cost Burden in Salzburg

Despite the high market prices, new construction activity in the federal province has remained below expectations for many years. In addition, residential construction in Salzburg is increasingly being pushed away from central locations into rural areas. Based on this initial situation, the WIFO study commissioned by the Salzburg Chamber of Labour analyses the causes of these developments on the Salzburg housing market.

First, different perspectives of the high housing cost burden in the federal province of Salzburg and the consequences for the affected households are examined. The comprehensive data analyses show that in addition to private for-profit providers, social housing in Salzburg is also markedly more expensive than in other federal provinces. A detailed examination of the main cost components reveals that both construction costs and land costs in Salzburg are above average, the latter also being related to a comparatively restrictive zoning. The high costs of housing construction inhibit new housing construction in Salzburg.

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