Further action is needed in residential construction. GBVs are ready to act as partners in the fight against the recession in the construction industry.
Tulln (OTS) – The high property prices, the sharp rise in construction costs and, most recently, the interest rate turnaround on the capital market have led to a standstill in new housing construction throughout Austria, especially in the commercial sector. This is accompanied by several problems. “We know that stagnating housing construction is, first of all, a problem for the housing needs of the growing Austrian population,” reminds association chairman Klaus Baringer at the press conference as part of this year’s association day in Tulln. But there are other problems. “These developments have led to a recession in the Austrian construction industry, which in turn is a major threat to the Austrian labor market. The construction industry, with its more than 300,000 employees, is an important factor in Austria’s economy,” warns Baringer.
GBVs as a safe haven
With their continuous housing construction, the 182 GBVs not only secure the supply of affordable housing, they also ensure that the Austrian construction industry is at a basic capacity and have a stabilizing effect on the economy. “The GBVs can therefore be a key lever for solving the problem, but appropriate measures and significant changes in the conditions are urgently needed,” says Klaus Baringer. An investment offensive in subsidized housing not only has an anti-cyclical effect, but also a job-securing effect and positive value creation and employment effects that extend far beyond the construction sector. “The non-profit organizations are a strong partner for politics, a reliable client for the construction industry, a secure partner for banks and a key guarantor of the prosperity and satisfaction of the Austrian population,” emphasizes Deputy Chairman Herwig Pernsteiner.
Rebuild the system
From the association’s point of view, the housing package adopted by the Austrian federal government is a first important step towards easing the difficult situation on the housing market. However, steps must also be taken beyond short-term measures so that non-profit housing can be structurally restored with long-term federal involvement.
In 2022, the federal states’ income from loan repayments and housing subsidies amounted to 2.7 billion euros. In contrast, spending on housing subsidies amounted to just 1.9 billion euros. “In terms of gross domestic product, we were at 1.4% of gross domestic product in the early 1990s, and currently we are only at 0.4% of gross domestic product,” analyzes Klaus Baringer. “Reintroducing the earmarking of housing subsidies is therefore the order of the day.”
Investments in GBVs have a double effect
In addition to the economic stabilizing effects of non-profit housing, more affordable housing also has a positive effect on the purchasing power of the population. “In a GBV apartment, residents have more money left in their wallets. This is because GBV rental apartments are 3 euros per square meter cheaper than those of private individuals, as Statistics Austria found in the latest microcensus,” says Herwig Pernsteiner. Despite stronger price increases in all sectors, it is clear that the price advantage of non-profit rental apartments has also increased in the last year. This means that a household in the non-profit sector saves an average of €2,500 per year compared to households in the private sector for the same living space.
The Association Day 2024
Around 300 people from all over Austria are taking part in this year’s “Association Day of Non-Profit Housing Associations”. This year, Lower Austria is the host and the event is taking place in Tulln. After the internal association day on Wednesday, the public part is themed “Artificial Intelligence (AI) and its impact on non-profit housing associations”. The supporting program includes viewings of GBV buildings and the Lower Austria regional group is inviting people to an “Evening of the Rose” in the Tulln Garden.
The GBVs
The 182 GBVs are companies that provide housing for broad sections of the population. They do this not in a way to maximize profits, but rather in a way that serves the common good. Their business activities are regulated by the Housing Non-Profit Act (WGG) and supplementary regulations. GBVs currently manage around 998,000 apartments, of which around 660,000 are their own rental and cooperative apartments.
Photos of the press conference can be found at www.gbv.at/aktuelles
Video material of the press conference can be made available upon request to [email protected].
Inquiries & Contact:
Austrian Association of Non-Profit Housing Associations
Dr. Klaus Bichler
public relation
01/505 58 24 229
kbichler@gbv.at
www.gbv.at
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