Housing Cost Burden in Salzburg: Causes and Solutions

The study sheds light on the high housing cost burden in the province of Salzburg and illustrates the consequences for the affected households and the Salzburg housing market. The extensive data analyses show that, in addition to private profit-oriented providers, social housing is also markedly more expensive in Salzburg than in other provinces. A detailed examination of the main cost components finds that both construction costs and land costs in Salzburg are above average, the latter probably also being related to a comparatively restrictive zoning. The high costs of housing construction inhibit new housing construction in Salzburg. In addition to an increase in the below-average share of social housing, the reduction of construction and land costs must be seen as a central lever for a sustainable reduction of the high housing cost burden in Salzburg.