The right to housing for the many is coming under increasing pressure in Austria. The housing boom benefits the few, while the many face an immediate shortage of affordable, stable and accessible housing. People at risk of poverty and people with a refugee or migration background are particularly affected by exclusion and discrimination. The important course that needs to be set now so that the human right to housing can be enforced for the many was recently discussed at the City conference “Housing for the many” discussed.
Austrian public housing
“All have the right to a standard of living adequate for themselves and their families of health and well-being, including food, clothing, housing, […]”- that’s how he stops 25th Article of the UN Declaration of Human Rights the right to housing for all in writing. The right to housing can also be found in the European Social Charter, defined as protection against homelessness and affordable housing costs for everyone. Although Austria signed this charter in principle, the relevant article on the “right to housing” was not ratified. In Austria, the right to housing is not an enforceable right and it is not recorded in this form in the constitution. However, the “Austrian People’s Housing System” is included in the constitution. What is meant by this is the task of the state to provide housing for the financially disadvantaged population groups. Non-profit housing is based on this constitutional law, as is the regulation of the private market through tenancy laws with the aim of greater affordability for the many. However, a look at the actual implementation of the Austrian public housing system shows a sobering picture. It does not look good to provide housing for the financially disadvantaged population in the current situation.
Concrete gold instead of the right to housing
Almost every third person in Austria fears in the near future in payment difficulties due to housing costs to guess. On the one hand, this alarmingly high number of people with massive housing problems is related to the general wave of inflation. On the other hand, the development of the purchase and rental prices of apartments, especially in the cities, has been steadily increasing for many years. In Vienna, the purchase prices since 2008 by 153% and rents for new private contracts by 67%. These price increases are well above general inflation and increases in wages. Behind these dynamics lies a housing market that is characterized by investments. On the one hand, there is a boom in new construction activity in Vienna. For the most part, privately financed apartments are being built at luxury prices, while the proportion of subsidized housing is falling sharply. Between 2018 and 2021 it will only be 34%. For comparison: in Vienna in 1994 there were still around seven subsidized apartments for every privately financed apartment, today there is not even a whole one. The market for old apartment buildings is also booming. The remaining stocks of open-ended and affordable leases are disappearing. The result is that massive excess profits in the real estate industry are faced with enormous affordability problems and insecurities on the part of tenants.
Stability, accessibility and affordability at risk
Fixed-term rental agreements have become the new norm and endanger the stability of living conditions. In Austria there was Already over 347,000 fixed-term leases in 2021 in the private segment. That means: Across Austria almost every second existing rent in the private segment is limited and in Vienna it is already almost two thirds of private new contract rents. But the accessibility of housing is also threatened. If you are currently looking for an apartment, you have to reckon with significantly higher housing costs compared to existing tenancies. The new contract rentals – especially in the private sector – are around 50% above the average in Vienna in 2021. Social housing offers a cheaper alternative here, but not everyone has equal access. Depending on the federal state, access barriers are linked to citizenship, residence status, length of stay or even knowledge of German. After all, the affordability of housing is also in serious jeopardy. In addition to the price increases that have been going on for years, there are currently also the benchmark and category increases in the course of general inflation. The result is an enormous burden on households. Current figures from Statistics Austria show that around 1.9 million people will experience payment difficulties within the next three months expect around living. So almost every third person between the ages of 16 and 69.
Inflation hits everyone, but some particularly hard
Stress and precarious housing situations are not evenly distributed in society. People with lower incomes or with a refugee or migration background find it particularly difficult when looking for accommodation and are particularly often affected by stressful living situations. Throughout Austria, more than 1.3 million people with a monthly income below 1,370€ get along. This means that every seventh person in Austria is at risk of poverty. While among Austrian citizens about every tenth person is affected already every third person with non-Austrian citizenship is at risk of povertyin the group of citizens outside the EU even almost every second.
Overburdened with housing costs
This has direct consequences in terms of housing costs. If more than 40% of the monthly budget has to be spent on housing costs, there is a housing cost overload. People in cities are twice as likely to be overburdened with housing costs compared to the Austrian average. There is also a clear gap by citizenship: People with non-Austrian citizenship are three times as likely to be overburdened with housing costs like Austrian citizens.
Living in a small space
The lack of affordability of living space often has to be compensated with a loss of space: Viennese: inside without a migration background have an average of 43m2 per capita availablewith a migration background from the EU only 35m2 and from third countries only 28m2. In numbers, spatial narrowness is measured as an overlay. One speaks of overcrowded apartments when people in the household do not have their own room of more than eight square meters or the living space per person is less than 16m2 amounts to. Among Austrian citizens, only three percent are affected by over-coverage, however, every fifth person in the group with non-Austrian citizenshipalmost every third person with citizenship outside of the EU.
Temporary contracts as a reality
Newcomers are initially dependent on the private housing market – the most expensive area with the highest number of fixed-term contracts. This also shows that one third of Viennese without a migration background is affected, but two thirds of Viennese with a migration background. In everyday life this means hoping every few years that the lease will be renewed and in most cases a price increase is to be expected. And even in the case of non-extension, there are considerable additional costs due to relocation, deposit and possibly increased rent.
The tip of the iceberg: homelessness
The most serious form of poverty and exclusion is homelessness. last were 19,450 people in Austria registered as homeless, i.e. accommodated in facilities for the homeless or registered with a main residence registration “O“. Around 60% of the registered homeless live in Vienna. Statistically, however, it is only possible to depict part of the entire spectrum of homelessness. Many try to hide their situation as long as possible, entering into dangerous dependent relationships or accepting very precarious conditions. What is clear, however, is that homelessness and precarious living conditions reach into the middle of society and those affected are increasingly younger, can be found in all educational levels and some are employed.
consequences of inaction
Society as a whole pays for the consequences of homelessness and precarious living conditions. For example, a AK estimatethat rent arrears of around €2,500 lead to follow-up costs of at least around €30,000 if you include the costs for eviction, court and emergency accommodation. Apart from the financial aspects, society as a whole also benefits from affordable, accessible and stable housing for the many. Housing has a central and integrative function for positioning within society. A secure housing situation is the basis for social participation, professional activity, education, health and social relationships. The decisive levers for improving and ensuring good housing lie largely in housing policy. Because a lack of affordable housing leads to the generation of need instead of combating the causes. The social department alone cannot make up for what has been neglected in housing policy.
Ensuring housing for the many in the long term
Fulfillment of the right to housing in the sense of the UN declaration of human rights requires concrete steps in housing policy. In order to create stable living conditions, the possibility of fixed-term contracts must be abolished, with a few exceptions. A rent cap that allows a maximum rent increase of two percent per year would currently protect households from the risk of poverty. In the long term, a comprehensive tenancy law reform and an active land policy for more social housing must ensure the affordability of housing. Private developers should also be held accountable and, to a certain extent, should be encouraged to use socially bound housing for new construction and expansion. Last but not least, access to social housing must also be improved in order to reach the groups living particularly precariously. With the necessary political will, housing can become a reality for the many as a basic right, no matter how much you have and no matter where you come from.
