Whether renting or owning, housing poses financial challenges for many. The high prices for real estate are mainly due to the limited supply. Construction union official Josef Muchitsch criticizes in the “Krone” interview: “Not even a euro of the housing package has reached the construction site!”
Josef Muchitsch, head of the Bau-Holz trade union and social-democratic member of the National Council, said in the “Krone” interview: “From 2017 to 2019 we built too much, at that time 85,000 housing units were built per year. Now it is the other way around and demand is greater than supply.”
Muchitsch calls for a national framework plan
He lacks a general plan. “Construction in Austria is a patchwork of states.” Like his party colleague and mayor of Vienna, Michael Ludwig, Muchitsch therefore calls for a ministry for housing and buildings and a national framework plan.
Because large sums of money are involved, national coordination is also important. The government must plan ahead so that there is no overheating or underdevelopment. “The need must be met,” says Muchitsch. This planning certainty must also be available for climate measures. “People otherwise postpone projects because they do not know what will happen next. In principle, it makes sense to make old houses climate-friendly and to renovate them. Construction companies also help with this.”
Housing subsidies are federal state funding
To have financial resources, the earmarking of housing subsidies must be reintroduced. “This is currently a bundle of money for the states to plug their budget holes,” says the red unionist. The majority of housing subsidies do not flow to projects that are actually intended for them, which slows down new construction.
Muchitsch also sees an urgent need for action when it comes to housing finance. Tighter credit rules make it virtually impossible for many households to build a home. While the tighter procurement rules have monetary policy reasons, “we have to do something when we see the regional economy running out of steam,” Muchitsch said.
Not a single euro of the housing package has yet arrived at the construction site
This was also the aim of the cabinet’s housing package. In the ‘Krone’ conversation, Muchitsch sees this as just an ‘attempt’ by the government that came far too late: ‘Not a single euro of the housing package has arrived at a construction site.’ It takes a long time for construction to come into effect, because construction takes a long time. Lead times apply, many projects have to start first.
Hopefully it will happen in 2025. Otherwise, there is a risk of further job losses: “10,000 construction workers have already lost their jobs due to the housing crisis. If it continues like this, it will drag on. And we cannot get these skilled workers back,” says Muchitsch, who sees no light at the end of the tunnel.
In addition to new construction, the rental market is the second major ‘construction site’. Muchitsch analyses: “First, the warm rent was increased because of energy prices and then the cold rent was also adjusted. But if nothing is invested, that is not justifiable.” He therefore advocates a rent freeze, especially if owners do not invest money in the rented property.
As reported, costs have been rising to record levels almost everywhere recently. And that is now on top of a host of other price increases, such as food.
Muchitsch, who is also the social spokesman for his party: “It is significant that Austria is at the bottom of the list in Western Europe, both in terms of combating inflation and in terms of economic growth. You have to succeed in coming last twice.”
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.
