Starting point and aim of the project
House prices in Europe have risen sharply since the period of low interest rates. It is striking that even countries with traditionally stable house price structures, such as Austria and especially Vienna, have been affected. A decline in housing affordability can be observed internationally. This goes hand in hand with greater financialisation – both for owners and tenants.
In the economic discourse, a solution is discussed at the level of the economic policy subsidy structure. However, the choice between subject (demand-oriented subsidies) and object (supply-oriented subsidies) does not go far enough. What is needed is a comprehensive analysis of housing in a broader economic context. This would make it possible to identify potential new approaches and ways to make housing more affordable and thus make a positive contribution to the economic hub.
The central innovative content of the project lies in the interdisciplinary combination of economic, political science and economic geography perspectives.
The outcome of the project is expected to be a profound understanding of the mechanisms and instruments that create the conditions for affordable housing at the intersection of economic development trends (such as financialisation), new opportunities (sustainable finance) and innovative regulations (land policy). Recommendations for action will be derived and economic policy measures will be identified that can be used by the City of Vienna in particular to further promote affordability and sustainability in the housing sector and thus strengthen Vienna as a business location in line with the Smart City Wien Framework Strategy 2019-2050 (City of Vienna 2019).
The research project is financially supported by the City of Vienna.