The government’s planned rent cap continues to spark heated debate. Klaus Baringer, head of the non-profit housing developers, expects little savings for the approximately 690,000 tenants and a very large annual loss for the providers of subsidized apartments. He is therefore quick to call for political subsidies, so that affordable homes can continue to be built.
“The lid will fall on housing policy,” Klaus Baringer, head of non-profit housing developers in Austria, is convinced. The savings for tenants are small, the effects on the sector with currently 690,000 homes, which are a quarter cheaper than the market, but enormous. The planned rent limit stipulates that the increase from 2024 may only amount to 5% per year. This hits the cooperatives particularly hard, as their last rent increase took place in 2022. Under current legislation, there would be a plus According to the consumer price index, these revenues will now be reduced next year.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
