The Price-Dampening Effect of Non-profit Housing
An increase in GBV market share by 10 per cent leads to a reduction in unregulated rents by 30 to 40 cents per m2. The regional market share of GBV is thus an important housing policy factor for the entire market.
The study thus quantifies for the first time the price-dampening effect of GBV on the private rental housing supply, which arises from competition between the provider segments. In regions with a higher share of GBV, unregulated rents are closer to the cost based rents of GBVs and therefore cheaper. GBV also contribute to the stabilisation of the housing market and offer a low-cost alternative to the private rental housing market. In urban and more western regions, the price advantages of GBV are particularly clear. In loosely populated areas and in the east of Austria, GBV tend to score with a quality advantage thanks to a relatively young rental housing stock.
Comprehensive interactive visualisations of the study results are available at
https://non-profit-housing.wifo.ac.at/.
Publications
Please contact
