Brief Analysis of Current Rent Regulation in Austria

In this Research Brief, the "5. Mietrechtliche Inflationslinderungsgesetz (5. MILG)", currently under consultation, is analysed from an economic perspective. The focus is on three core measures: capping indexation, increasing the minimum fixed-term duration, and a rent brake for rents subject to the "Mietrechtsgesetz (MRG)". Finally, we provide a preliminary assessment of the effects on the residential property market and derive implications for several of the additional regulatory plans announced in the government programme, as well as for rent regulation overall.