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Vienna Reacts to Predicted Housing Shortage

Published: March 17, 2011; 10:00 · (Vindobona)

Union and construction industry welcome the "housing offensive" of the city government.

Vienna Reacts to Predicted Housing Shortage / Picture: © www.aspern-seestadt.at

Already in 2010, Austria was short of 13,000 homes. Only 37,000 new housing units were built. The average annual demand, according to experts, is however 50,000 new homes. The 7,500 apartments planned by the City of Vienna for the next 2 years will be supported by a privately financed segment between the essential subsidized and the existing independent financed housing construction with € 500m. Overall, total investments for € 1.25bn are put into action this way, turning Vienna into the first province that responds to the impending housing shortage.

Apart from this, some 8,000 jobs will be preserved or created in the construction industry, precisely this industry where according to economists additional investments are necessary to achieve economic impulse.

The union and the construction industry are convinced of the correctness of the undertaking. Construction unionist Josef Muchitsch says: "Vienna is responding quickly and boldly to the already existing housing shortage and does not go on hold waiting for the next financial compensation negotiations in 2013. With this housing construction offensive Vienna ensures affordable housing for a targeted clientele."

The domestic housing construction industry also welcomes this initiative: "With this, an exemplary measure is set by Vienna, taking a leading role. In addition, the city proves that in addition to the provision of essential housing assistance, additional tools can be put into action for demand-oriented housing."

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