2023-06-24 22:00:00
Even the non-profit run the costs. The price-dampening effect of non-profit building associations might be reinforced with Green Deal funds.
Rising interest rates, tighter lending, high construction prices and reduced volume of new construction. These are all ingredients for the very mixed real estate market. The non-profit cooperatives are a stabilizing factor. With a market share of 40 percent in the rental housing sector and 17 percent in the housing and housing stock, the non-profit building associations (GBV) have a significant influence on the entire housing market.
Non-profit housing has a price-dampening effect
A current study by the Economic Research Institute (Wifo) with the housing department of GBV on behalf of MA 50 of the City of Vienna scientifically proves for the first time the price-dampening effect of non-profit housing. “The size of this effect depends heavily on the market share in the respective regional rental housing market. On average, it can be seen that an increase in GBV market share by ten percent leads to a decrease in unregulated rents of 30 to 40 cents per square meter. With a 70 square meter apartment, this corresponds to savings of between 250 and 340 euros per year,” says study leader Michael Klien from the economic research institute Wifo. The study was also a topic at the association conference last Thursday in Salzburg. The current study shows that in addition to these direct effects, there are also indirect effects resulting from the competitive interaction between for-profit and non-profit companies that have a price-dampening effect, explains association chairman Klaus Baringer. “Due to the competition with our GBV, the unregulated rents are on average around five percent cheaper than would be the case without GBV.”
Where does the money for cheap housing come from?
Especially when it comes to property, non-profit organizations also have to struggle with the current situation. Where will the money for affordable housing come from? In this context, Christian Struber, Managing Director of Salzburg Wohnbau and chairman of the Arge Eigenheim, refers to the EU funding pots for the targeted climate protection measures. He sees a basis for the reorganization of housing construction financing in Austria in the financing pots worth billions, on the one hand through the Green Deal of the EU, but on the other hand also through funds from the European Investment Bank.
In view of the declining start of construction, including for non-profit housing, the focus in future will have to be placed more on the renovation and modernization of existing buildings anyway, says Struber. A climate protection promotion pot, fed from EU and federal funds, might be a significant lever for living with low operating costs.
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