Why will young people rent more in the future?

2023-11-13 16:10:00

The sharp increase in construction prices and the interest rates that have been rising for some time are massively changing the real estate market. “We assume that the demand for rental apartments will continue to increase,” says the managing director of VKB Immobilien, Mario Zoidl, in the “Geld&Leben” podcast with economics department head Dietmar Mascher.

The chairman of the real estate trustees in the Upper Austrian Chamber of Commerce expects that construction costs will not fall noticeably, although demand for single-family homes is declining. This is partly due to rising wages.

Mario Zoidl

Real estate specialist

The sharp increase in construction prices and the interest rates that have been rising for some time are massively changing the real estate market. The managing director of VKB Immobilien, Mario Zoidl, in conversation with OÖN economics department head Dietmar Mascher.

“KIM didn’t need it”

As a result, younger people in particular are increasingly asking for rental apartments if they don’t have the equity to buy them. Zoidl cannot fully support the fact that the Financial Market Authority’s KIM regulation has stifled demand. “This regulation would not have been necessary, especially in Upper Austria. The banks had already applied stricter guidelines when examining loan applications.”

In the podcast, Zoidl also talks about the further price development and the question of whether the rising prices have an impact on the size of the properties in demand and whether there will be a countermovement again after an escape from the country, because prices in the country are sometimes significantly higher are lower.

Problems for brokers

The reorganization of brokerage activities with the switch to the ordering principle (“Whoever commissions the broker should also pay him”) has changed the market significantly. Some brokers are struggling. But the reorganization is also a disadvantage for the tenants, because they have mostly benefited from the work of the brokers, says Zoidl.