Changing rental prices

“Housing is affordable, but not cheap”

A medical center and 46 apartments will be built in Prinz Eugen Strasse by the end of 2025.(Bild: expressiv.at)

Lawog completed a total of 298 apartments - 252 rental apartments and 46 condominiums - in the previous year. Although the total construction volume of 109.7 million euros (of which 80.4 million was new construction) did not quite reach the record figure of 115.4 million euros set in 2022, it is still the second-highest construction output in the company's 70-year history.

No wonder that CEO Herwig Mahr and Executive Board Directors Christoph Khinast and Frank Schneider were more than satisfied at the annual balance sheet press conference. The latter rejoiced: "Lawog has never been as good as it is now. Because we have taken the right measures overall. But that doesn't mean we don't have to do anything more."

"Rents no longer cover costs for the public good"
According to Schneider, we will have to see how the new building develops. Whether it will still have the same significance in ten years' time as it does now. "Construction costs have risen, housing is affordable, but not cheap. Initial rents, which were still around EUR 7.50 per square meter in Linz five or six years ago, have moved towards EUR 10.5 and 11 - no longer cost-covering for the non-profit sector. That is our challenge for the future."

"300 to 400 affordable apartments would be possible"
One topic that is also being addressed intensively is the possible redensification of existing areas. They are currently examining how areas in Linz from the 1950s, 1960s and 1970s can be redensified with minimal land consumption. "We could build 300 to 400 new apartments here in the next five to seven years under affordable conditions," says the Managing Director.

Excitingly, because ownership - especially for younger people - is becoming increasingly difficult to afford, 17 of the 27 owner-occupied apartments recently had to be converted into rental apartments, and only rental properties are currently under construction.