The Austrian government has adopted a number of tough measures to regulate the rental housing market. Legislative innovations concern limiting rent growth and extending the minimum length of contracts, which caused a wave of discussion among tenants, property owners and analysts.
If inflation exceeds 3% per annum, landlords will not be able to fully pass on price increases to tenants. Their rent increase can only be half of the excess over the threshold. Example: if inflation is 4.2%, rent can only be increased by 3.6%.
The minimum lease term is increased from three to five years, making it more difficult to replace tenants to eliminate losses through new contracts.
An exception is made for family homes: one- and two-family properties are not affected by the new rules.
For buildings built before 1945, the rules are even tougher:
– In 2025, rents for such houses/apartments cannot be raised at all;
– in 2026, a maximum of 1%;
– in 2027 by a maximum of 2%.
In Vienna, for example, for such buildings there are already legislated maximum rents of around €6.67/m², with a number of surcharges and discounts, but often the final rent barely exceeds €10/m². Economists warn: such measures may curb rental growth, but at the same time reduce the incentive for owners to rent, potentially leading to a shortage of supply (compare with the experience of Berlin).
According to Statistics Austria and other reliable sources, as of January 1, 2025, there are about 1,855,419 people with foreign citizenship living in Austria.
The largest groups of foreign nationals are: Germany (~239,500), Romania (~155,700), Turkey (~124,000), Serbia (~123,000), Ukraine (~100,000). In 2024, the share of people with a migration background is 27.8 % of the Austrian population. This includes those born abroad and their descendants.
