Styria updates housing subsidies
Housing subsidies are changing, also the housing bonus is to decouple rents from the rise in interest rates. The housing subsidy is to be increased
As in almost all federal provinces, subsidized housing in Styria is facing major challenges. High interest rates, high construction costs, expensive land all make building extremely difficult. For about half a year, no new projects can be started, it was said on Monday at a press conference of the provincial government in Graz. Only projects already underway are being continued. Because a gap in completions is looming, construction companies also often don’t know how to continue employing their staff.
Interest rates cause rents to rise
In recent months, interest rate hikes have also led to massive rent increases in some cases for residential complexes that have already been completed. More than 20,000 people whose subsidized apartments have been built since the start of the low interest rates in 2015 have been particularly affected. For example, the net rent of a subsidized 70-square-meter apartment has increased by 75 percent from 364 euros in 2021 to 635 euros now.
The Styrian state government now wants to take countermeasures. The first step will be to reform the subsidies for multi-storey buildings, as announced Governor Christopher Drexler (ÖVP) and his deputy, Regional Finance Minister Anton Lang (SPÖ). It will be changed to a combination of low-interest state loans and increased subsidies. The financing of new dwellings becomes thereby more favourable and the rents remain affordable. Around 1,400 apartments will be affected each year. In addition, the income limits will also be adjusted. The measure will cost a total of around 100 million euros in 2023 and 2024.
Source: Der Standard – translated from the German
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