Noticeable price increases – housing in crisis: it won’t get any cheaper

This is not only a headache for private home builders, but also for non-profit organizations. “You have to think about something, because what we don’t want is for the costs to be passed on to our tenants, so rents go up,” clarifies Oberleitner.

No projects have been postponed yet
That is why there was recently a roundtable discussion with LH Vice and housing advisor Manfred Haimbuchner. “It must be prevented that the increase in construction costs is only at the expense of the tenants,” says Haimbuchner. “In the construction sector there have been increases of around 15 percent lately,” Oberleitner says in this regard. No projects have yet to be put on hold, but developments are being closely monitored.

Build, wait or leave the project?
Also, many private home builders are currently facing tough decisions. But experts have a clear opinion on that. “It won’t get cheaper. The experience of recent decades has shown this. So there is no point in waiting,” says economic expert Michael Klien of WIFO, the Austrian Institute for Economic Research.

Prices high, resources scarce
A review he shares with Jochen Güntner. He is professor of economics at Kepler University in Linz. “Of course it is a difficult individual decision in which many factors have to be weighed up,” says Güntner. In many areas, such as wood, heat pumps and crude oil insulation materials, prices are currently very high and resources are scarce, but on the other hand, interest rates are very low. “That means nothing more than that low interest rates eat up high inflation,” Güntner describes.

Full order books
Christian Wimberger sees no reluctance among home builders and especially those who want to renovate their property. His company builds about 700 houses a year and the order books are full. He too is sure: “Prices will not fall.” He does see possibilities to finance a house in the current situation, especially if you are prepared to miss out on one or the other luxury. “You can build the pool later. Or opt for a carport instead of a double garage,” says Wimberger.

In addition to the construction costs, the builders have to deal with other hurdles. The granting of real estate credit will be tightened from 1 July. However, the new rules are still a bit vague, criticizes Michaela Keplinger-Mitterlehner, chairman of the WKOÖ banking department: “It is not yet clear what counts as equity. At the moment, for example, the land on which the building stands would not count.” A circumstance that Robert Oberleitner also finds problematic.