Rental Development in Austria: A Descriptive Analysis for 2005 to 2012
Based on microcensus data, a comparison of rent development by ownership category (local government, co-operatives, private owners) is conducted for the period 2005 to 2012. During the period under review, rents (in € per square meter) for units owned by the private sector generally have risen at a faster pace than the general rate of inflation and disposable incomes of private households. Also, the level of rents in 2005 and the increase over the past seven years were significantly lower for units owned by local governments and co-operatives. Both of these segments receive public subsidies. The private market segment can be subdivided into three segments: "market rents", "reference rents" and "other regulated rents". Because the "reference rent" system was introduced only in 1994, the average lease duration is substantially shorter than for apartments according to "market rents". This is the reason why the average rent in all "reference rent" flats was above the level of flats charging "market rents" in 2005 as well as in 2012. Increases in rents for all flats with "reference rents" were, in statistical terms, significantly lower (especially in Vienna) during the review period than for all "market rents" flats. The level of rents tends to be higher in Vienna than the average rent level in the other Austrian Länder.