Vienna – The debate over how to address Austria’s housing shortage is intensifying, with the head of the country’s real estate association arguing that a tax on vacant properties is not the answer. Roman Oberndorfer, Chairman of the Federal Association of Real Estate and Asset Trustees in the Austrian Economic Chamber (WKÖ), contends that such levies fail to create new housing and may even discourage investment. The discussion comes as the city of Salzburg considers increasing its existing vacancy tax, a move Oberndorfer sharply opposes.
Oberndorfer dismissed Salzburg Mayor Bernhard Auinger’s assessment that the current vacancy tax is too low to cover administrative costs as a “misdiagnosis.” He argues that increasing the tax, as proposed by Auinger, will not solve the underlying problem of insufficient housing supply. “A vacancy tax does not create a single square meter of new living space. And increasing this tax, as is currently being discussed in the city of Salzburg, will not create any additional housing either,” Oberndorfer stated.
As is so often the case, the wrong lever is being pulled. A purely punitive logic towards owners cannot solve the structural housing problem from the perspective of the economy. The central challenge is that thousands of apartments are missing in Salzburg and throughout Austria. Estimates suggest around 20,000 missing housing units per year. This deficit cannot be resolved by additional burdens on owners, but only by the creation of new housing.
The core of the issue, according to Oberndorfer, is a significant shortfall in housing stock. He estimates that Austria is lacking approximately 20,000 housing units annually. Instead of punitive measures, he advocates for a “housing offensive” fueled by government incentives. These incentives, he says, should include greater legal certainty for investors, investment-friendly regulations, tax breaks, and a more equitable balance of interests between landlords and tenants. He noted that a fair balance of interests is already enshrined in the current government program, but its practical implementation has been lacking.
Oberndorfer, who is also a chartered real estate trustee and a court-certified expert for housing law, has been involved in the Austrian real estate sector for over 25 years. He currently serves as Chairman of the Salzburg Chamber of Commerce’s real estate group and as the state director of the Austrian Real Estate Association (ÖVI), according to his profile on the WKÖ website. This dual role, he says, allows him to bring both economic and industry expertise to the table.
Legal Uncertainty Discourages Landlords
Beyond the debate over vacancy taxes, Oberndorfer highlighted the growing legal uncertainty surrounding rental regulations as a major deterrent for property owners. He argues that constant regulatory changes, increasing government intervention, and a perceived bias towards tenants are making it increasingly unattractive and risky for private individuals to offer properties for rent. This, he contends, is directly contributing to the reduction in available housing.
“Structural solutions, investment incentives, and a stable legal environment that motivates owners to provide housing are necessary, rather than further burdening them,” Oberndorfer emphasized. He believes that a predictable and fair legal framework is crucial to encouraging investment in the rental market and increasing the overall housing supply.
The concerns raised by Oberndorfer reflect a broader debate within Austria about the best approach to tackling the housing crisis. While proponents of vacancy taxes argue they incentivize owners to rent out empty properties, critics like Oberndorfer maintain that they are a counterproductive measure that fails to address the root causes of the problem. The focus, he insists, must be on creating conditions that encourage the construction of new housing and attract investment in the sector.
The WKÖ’s position aligns with a growing call for a more holistic approach to housing policy, one that considers the needs of both tenants and landlords. As Salzburg and other Austrian cities grapple with rising housing costs and limited availability, finding a sustainable solution will require a collaborative effort between policymakers, industry stakeholders, and the public.
The next key development in this debate will be the Salzburg city council’s decision on whether to increase the vacancy tax. The outcome of this vote will likely set a precedent for other municipalities across Austria and could significantly impact the future of the country’s rental market. Readers can stay informed about updates on this issue through the WKÖ’s website and local news sources.
Do you have thoughts on Austria’s housing crisis? Share your comments below and join the conversation.
