Economic Effects of Subsidised Residential Construction in Vienna 2010-2013
According to data from the Vienna City Administration, Municipal Department 50 (residential building research), an annual average of around 4,500 new apartments were built and more than 13,000 were renovated in the years 2010-2013. Construction costs of almost 900 million € (560 million € for new apartments, 355 million € for renovations) were subsidised by a mix of non-refundable subsidies and long-term loans granted by the local government. Using ASCANIO, an econometric input-output model of the Austrian Länder, we estimate that these construction volumes are associated with value-added effects amounting to 1.3 billion €, which provided work for almost 18,000 employees; almost half of these effects are located outside Vienna.