Rents too high

Housing costs are becoming a problem in Vorarlberg

A recent survey by the Vorarlberg Chamber of Labor reveals alarming figures. Measures are required to relieve the situation. 

Around 83 percent of Vorarlberg residents feel that their housing costs are a burden, sometimes a heavy one. 36 percent would like to move into a non-profit apartment, but many do not meet the criteria. This is the result of an online survey presented on Friday by the Vorarlberg Chamber of Labor (AK), in which around 3,000 people took part.

The share of housing costs in household income continues to rise. According to the survey, respondents paid an average of 1,140 euros per month, compared to 9 percent less a year ago. This means that, on average, a third of their income now goes on housing, with some paying even more. "Four out of five survey participants are groaning under the high cost of housing. This cannot continue," emphasized Bernhard Heinzle, President of the Vorarlberg Chamber of Labour.

Less and less ownership possible
Home ownership is becoming less and less affordable. 48 percent of those surveyed lived privately in rented accommodation, 11 percent in non-profit accommodation. Around 39 percent lived in owner-occupied housing, so it is hardly possible to speak of a country of house builders. According to AK calculations, only 10 to 15 percent of the highest-earning households in the country could still afford home ownership. Whereas in 2010 a loan amounting to six times annual income was still sufficient to buy a home, today you have to take out a loan amounting to ten to twelve times annual income, according to the AK, citing analyses by the National Bank.

Tenants are particularly concerned about the fact that rental contracts are often only limited to three years, with each extension resulting in higher costs. This has a negative impact on life planning. In addition, since the introduction of the "ordering principle" - estate agent commissions may no longer be charged to tenants - the cost of drawing up contracts has apparently risen. Only a few dared to protest.

Non-profit housing
Interest in non-profit housing now extends far into the middle class, but Vorarlberg is still at the bottom of the league in this respect: the proportion of non-profit rental apartments in main residences has fallen from 12 percent in 2020 to 10 percent in 2022 and 2023. More social housing, a reform of tenancy law and redesigned housing subsidies are finally needed, they say.