Austrian Homeownership Rates Set to Rise as Austria model rejected | News.at”>KIM Ordinance Expires in Mid-2025
A sense of optimism is brewing in Austria’s housing market as the KIM Ordinance, a regulation that has hindered homeownership, is set to expire in mid-2025. This anticipated change is welcome news for aspiring homeowners and the construction industry alike, paving the way for increased housing affordability and a revitalized economy.
“The expiry of the KIM Ordinance is a positive, necessary step so that people in Austria can create homeownership again,” said Dr. Susanne Riess-Hahn, General Director of Wüstenrot and current chairwoman of the Austrian Building Society Association. “This is also against the background that Austria is one of the worst performers in Europe when it comes to ownership rates. The end of the KIM regulation is also good news for the construction industry so that it can once again live up to its role as an economic driver of the Austrian economy.”
The Quest for Homeownership
For many Austrians, owning a home is more than just a financial goal; it’s a deeply ingrained aspiration, particularly for young people and families. The BVO home savings survey, conducted annually in collaboration with market research institute INTEGRAL, consistently highlights this desire.
Their findings reveal that 44% of Austrians aged 18-29 are diligently saving money, with a primary focus on securing their future housing needs. This demonstrates a strong commitment to homeownership within the younger generation, suggesting a potential surge in demand as the KIM Ordinance comes to an end.
Securing a Stable Future
Beyond the emotional fulfillment, Dr. Riess-Hahn emphasizes the significant financial benefits associated with homeownership. “Creating homeownership is also an important precautionary measure, because those who live in their own home will have significantly lower fixed costs later in retirement due to the elimination of rent,” she explained.
This long-term perspective highlights the security and peace of mind that come with owning one’s home. As rental costs continue to rise in many areas, homeownership offers a path towards greater financial stability in retirement.
A Catalyst for Economic Growth
The positive ripple effects of increased homeownership extend beyond individual households. Dr. Riess-Hahn aptly points out the vital role the construction industry plays in Austria’s economy. “The end of the KIM regulation is also good news for the construction industry so that it can once again live up to its role as an economic driver of the Austrian economy.”
The anticipated surge in demand for new homes is expected to stimulate job creation and investment in the construction sector. This, in turn, will contribute to overall economic growth and create a more vibrant housing market.
What are the projected economic effects of the KIM Ordinance’s expiration on the Austrian construction industry?
## Interview: Austrian Homeownership Renaissance
**Interviewer:** We’re here today with Dr. Susanne Riess-Hahn, General Director of Wüstenrot and current chairwoman of the Austrian Building Society Association, to discuss the anticipated impact of the KIM Ordinance expiring in mid-2025. Welcome, Dr. Riess-Hahn.
**Dr. Riess-Hahn:** Thank you for having me.
**Interviewer:** Many are calling the KIM Ordinance’s expiration a turning point for Austria’s housing market. Could you elaborate on what this means for Austrian citizens?
**Dr. Riess-Hahn:** Indeed, the expiry of the KIM Ordinance is a crucial step forward. [1] Austria has historically struggled with low homeownership rates compared to many European countries. This regulation has made it particularly challenging for individuals to achieve their dream of owning a home. The lifting of this barrier will empower more Austrians, especially younger generations, to realize that aspiration.
**Interviewer:** You mentioned the construction industry. How will this change impact that sector?
**Dr. Riess-Hahn:** The construction industry plays a vital role in the Austrian economy. The KIM Ordinance’s expiration will revitalize the sector by stimulating demand for new homes and renovations. This, in turn, will create jobs and boost economic activity across the country.
**Interviewer:** Looking ahead, what are your expectations for the Austrian housing market following this change?
**Dr. Riess-Hahn:** We expect to see a positive shift towards increased housing affordability and a more vibrant housing market. The removal of this regulatory hurdle will unlock opportunities for both buyers and the construction industry, ultimately contributing to a stronger Austrian economy.
**Interviewer:** Dr. Riess-Hahn, thank you for sharing your insights on this important development.
**Dr. Riess-Hahn:** My pleasure.
