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State subsidizes housing construction with 184 million euros

State Councillor for Economic Affairs Marco Tittler and Governor Markus Wallner presented the measures for the creation of affordable housing on Tuesday morning.(Bild: VLK/Serra)

Due to the withdrawal of the KIM regulation, the number of applications for housing subsidies is likely to increase further. The state government has therefore provided a very generous amount of funding.

The state of Vorarlberg likes to boast that it offers the "best housing subsidy in Austria". Subsidy recipients can choose between an interest rate of 0.25 percent for the first five years, which rises to 1.5 percent by the 35th year, or a fixed interest rate of 1.25 percent for 35 years. The support services are awarded according to social and ecological criteria in particular. The corresponding guidelines will remain in place in the future, but there is significantly more money in the pot this year: the state budget has budgeted EUR 183.8 million for all housing subsidies (new construction, renovation, housing assistance, etc.), which is 14% more than in 2024.

End of the KIM regulation
The additional funding is also due to the fact that the number of applications for funding is likely to increase further. As is well known, the so-called KIM regulation will expire in the middle of the year, which will significantly lower the hurdle for buying a home. Demand had already picked up significantly in the previous year, announced Governor Markus Wallner and State Councillor for Economic Affairs Marco Tittler (both ÖVP) on Tuesday. In 2024, a total of 1065 new construction projects were funded, compared to only 917 in 2023. This means that the level before the coronavirus crisis has been reached again.

55 million euros for the non-profit sector
Another focus is on non-profit housing, for which 55 million euros have been reserved in 2025. The "WOHNEN550®" special housing program, the renovation offensive, redensification and the new hire-purchase model remain key starting points. "Our goal is and remains to create affordable housing and enable ownership in order to offer young people and families in particular a real perspective," Wallner clarified.

He also commented on the current discussion surrounding the design councils, which are being accused from several sides of torpedoing construction projects with excessive specifications. The municipality of Lauterach has therefore abolished the design advisory board in its current form and only intends to consult external experts for major projects in future. According to Wallner, he can "gain a lot from this solution", although he also emphasized that expert advice is useful in many cases.